ITT Inc (ITT)
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 | 676,000 | 528,200 | 468,000 | 504,300 | 226,500 |
| Long-term debt | US$ in thousands | 232,600 | 5,700 | 7,700 | 9,900 | 13,000 |
| Total stockholders’ equity | US$ in thousands | 2,762,600 | 2,528,200 | 2,248,100 | 2,225,800 | 2,126,400 |
| Return on total capital | 22.57% | 20.85% | 20.75% | 22.56% | 10.59% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $676,000K ÷ ($232,600K + $2,762,600K)
= 22.57%
ITT Inc's return on total capital has shown a positive upward trend over the past five years. The return on total capital increased from 10.59% as of December 31, 2020, to 22.57% as of December 31, 2024. This indicates that the company was able to generate more earnings relative to the total capital employed in its operations. The consistent growth in return on total capital demonstrates the company's efficiency in utilizing its capital to generate profits. ITT Inc's ability to maintain a relatively high return on total capital reflects a positive sign of financial health and effective capital allocation strategies.
Peer comparison
Dec 31, 2024