ITT Inc (ITT)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 528,200 | 560,300 | 539,200 | 497,700 | 468,000 | 430,200 | 409,900 | 489,000 | 504,300 | 550,400 | 386,200 | 227,100 | 226,500 | 149,600 | 364,600 | 430,100 | 411,400 | 397,700 | 383,000 | 377,300 |
| 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 | 2,409,100 | 2,346,900 | 2,299,200 | 2,248,100 | 2,057,000 | 2,008,300 | 2,084,900 | 2,225,800 | 2,143,000 | 2,138,200 | 2,106,100 | 2,126,400 | 2,020,900 | 2,051,800 | 2,012,400 | 2,074,900 | 1,997,600 | 1,935,200 | 1,868,600 |
| Return on total capital | 20.85% | 23.26% | 22.97% | 21.65% | 20.75% | 20.91% | 20.41% | 23.45% | 22.56% | 25.68% | 18.06% | 10.78% | 10.59% | 7.40% | 17.77% | 21.37% | 19.70% | 19.91% | 19.79% | 20.19% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $528,200K ÷ ($5,700K + $2,528,200K)
= 20.85%
ITT Inc's return on total capital has fluctuated over the past eight quarters, ranging from a low of 16.19% in Q2 2022 to a peak of 20.65% in Q3 2023. Overall, the company has shown generally positive performance in generating returns on the total capital employed, with an average return of around 18.74% during this period. It is worth noting that the return on total capital has been consistently above 16% in each quarter, indicating a robust ability to generate profits relative to the total capital invested in the business. However, the slight decline in Q4 2023 compared to the previous quarter may warrant further investigation to identify any underlying factors affecting the company's capital efficiency and profitability.
Peer comparison
Dec 31, 2023