Jacobs Solutions Inc. (J)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 692,436 | 1,030,070 | 905,188 | 824,525 | 609,371 |
| Long-term debt | US$ in thousands | 1,348,590 | 2,813,470 | 3,357,260 | 2,839,930 | 1,676,940 |
| Total stockholders’ equity | US$ in thousands | 4,549,470 | 6,546,220 | 6,060,060 | 5,940,040 | 5,815,710 |
| Return on total capital | 11.74% | 11.01% | 9.61% | 9.39% | 8.13% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $692,436K ÷ ($1,348,590K + $4,549,470K)
= 11.74%
Jacobs Solutions Inc.'s return on total capital has shown a positive trend over the past five years. The company's return on total capital has increased steadily from 8.13% in 2020 to 11.74% in 2024. This indicates an improving efficiency in generating profits relative to the total capital employed by the company.
The consistent increase in return on total capital reflects the company's ability to effectively utilize its total capital to generate earnings. This could be attributed to efficient capital allocation, effective cost management, or improved operational performance.
Overall, Jacobs Solutions Inc.'s increasing return on total capital is a positive indicator of the company's financial health and efficiency in utilizing its capital resources to generate returns for its stakeholders. It suggests that the company is making sound financial decisions and is on a path of sustainable growth.
Peer comparison
Sep 30, 2024