Itron Inc (ITRI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 264,110 | 134,340 | -9,204 | -98,129 | -13,716 |
| Long-term debt | US$ in thousands | 1,242,420 | 454,827 | 452,526 | 450,228 | 902,577 |
| Total stockholders’ equity | US$ in thousands | 1,390,600 | 1,310,910 | 1,168,470 | 1,116,080 | 816,548 |
| Return on total capital | 10.03% | 7.61% | -0.57% | -6.26% | -0.80% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $264,110K ÷ ($1,242,420K + $1,390,600K)
= 10.03%
Itron Inc's return on total capital has fluctuated over the past five years. In 2020, the return on total capital was at a negative 0.80%, indicating that the company did not generate sufficient returns on the total capital employed. The trend continued negatively in 2021, with a return of negative 6.26%.
However, there was a positive turnaround in 2022, with the return on total capital improving to a negative 0.57%. The company's financial performance significantly improved in both 2023 and 2024, with returns of 7.61% and 10.03%, respectively. These positive returns indicate that Itron Inc was able to generate favorable returns on the total capital invested in the business during these years.
Overall, the company has shown variability in its return on total capital over the past five years, with a notable improvement in performance in the later years. It is important for Itron Inc to sustain this positive trend and continue to generate healthy returns on its total capital to ensure long-term financial success and value creation for its stakeholders.
Peer comparison
Dec 31, 2024