Jacobs Solutions Inc. (J)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,030,070 | 905,188 | 824,525 | 609,371 | 968,800 |
| Long-term debt | US$ in thousands | 2,813,470 | 3,357,260 | 2,839,930 | 1,676,940 | 1,201,240 |
| Total stockholders’ equity | US$ in thousands | 6,546,220 | 6,060,060 | 5,940,040 | 5,815,710 | 5,714,690 |
| Return on total capital | 11.01% | 9.61% | 9.39% | 8.13% | 14.01% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,030,070K ÷ ($2,813,470K + $6,546,220K)
= 11.01%
Jacobs Solutions Inc.'s return on total capital has displayed varying trends over the past five years. The company's return on total capital has shown a generally upward trajectory from 2019 to 2020, reaching 14.01%. However, there was a slight decline in 2021 to 9.39%, followed by a gradual increase in 2022 and 2023 to 9.61% and 11.01%, respectively. This suggests that the company has been able to generate a higher return on the total capital employed in recent years, reflecting improved efficiency and profitability. It is important for Jacobs Solutions Inc. to continue monitoring and enhancing its return on total capital to ensure sustainable financial performance and long-term value creation for its stakeholders.
Peer comparison
Sep 30, 2023