Jacobs Solutions Inc. (J)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 928,979 | 998,637 | 1,000,365 | 1,002,923 | 1,030,067 | 1,061,464 | 1,080,875 | 961,667 | 905,189 | 859,446 | 841,589 | 643,500 | 688,091 | 459,048 | 389,678 | 598,568 | 535,973 | 612,585 | 508,163 | 443,066 |
| Long-term debt | US$ in thousands | 1,348,590 | 2,091,460 | 2,164,840 | 2,834,880 | 2,813,470 | 3,145,530 | 3,402,470 | 3,434,320 | 3,357,260 | 3,520,490 | 3,196,370 | 3,073,070 | 2,839,930 | 3,067,740 | 3,425,850 | 1,797,070 | 1,676,940 | 2,155,170 | 3,099,460 | 1,414,900 |
| Total stockholders’ equity | US$ in thousands | 4,549,470 | 6,616,790 | 6,624,110 | 6,678,270 | 6,546,220 | 6,521,720 | 6,379,640 | 6,184,100 | 6,060,060 | 5,933,290 | 6,077,450 | 6,069,950 | 5,940,040 | 6,152,910 | 6,008,440 | 6,099,490 | 5,815,710 | 5,835,810 | 5,561,780 | 6,004,420 |
| Return on total capital | 15.75% | 11.47% | 11.38% | 10.54% | 11.01% | 10.98% | 11.05% | 10.00% | 9.61% | 9.09% | 9.07% | 7.04% | 7.84% | 4.98% | 4.13% | 7.58% | 7.15% | 7.67% | 5.87% | 5.97% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $928,979K ÷ ($1,348,590K + $4,549,470K)
= 15.75%
Jacobs Solutions Inc. has demonstrated a pattern of improving return on total capital over the past several quarters. The return on total capital has increased from 5.87% in March 2020 to 15.75% in September 2024. This indicates that the company has been generating a higher return for its capital providers over time.
The company's return on total capital exceeded 10% consistently from March 2023 onwards, signaling strong performance in utilizing its invested capital effectively. The upward trend in return on total capital suggests that the company is efficiently managing its resources and investments to generate profitability.
Overall, Jacobs Solutions Inc.'s improving return on total capital reflects positively on its financial performance and indicates effective capital utilization strategies. It suggests that the company is creating value for its capital providers and potentially outperforming its industry peers in terms of capital efficiency.
Peer comparison
Sep 30, 2024