ITT Inc (ITT)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 528,200 | 468,000 | 504,300 | 226,500 | 411,400 |
| Long-term debt | US$ in thousands | 5,700 | 7,700 | 9,900 | 13,000 | 12,900 |
| Total stockholders’ equity | US$ in thousands | 2,528,200 | 2,248,100 | 2,225,800 | 2,126,400 | 2,074,900 |
| Return on total capital | 20.85% | 20.75% | 22.56% | 10.59% | 19.70% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $528,200K ÷ ($5,700K + $2,528,200K)
= 20.85%
ITT Inc's return on total capital has shown variability over the past five years. In 2023, the return on total capital increased to 19.40%, indicating a strong performance in generating profits relative to the total capital employed. This improvement is positive compared to the previous year's return of 16.89% in 2022.
In 2021, the return on total capital was 21.12%, reflecting efficient utilization of capital to generate returns. However, in 2020, the return dipped to 12.63%, possibly due to challenges or inefficiencies in capital deployment.
The return on total capital rebounded in 2019 to 19.08%, showcasing a favorable trend in capital efficiency. Overall, the company has generally maintained a healthy return on total capital over the years, with fluctuations reflecting changes in profitability and capital utilization strategies.
Peer comparison
Dec 31, 2023