John Bean Technologies Corporation (JBT)
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 | 630,400 | 168,400 | 161,400 | 159,400 | 185,400 |
| Long-term debt | US$ in thousands | 646,400 | 977,300 | 674,400 | 522,500 | 698,300 |
| Total stockholders’ equity | US$ in thousands | 1,488,900 | 905,400 | 750,500 | 637,100 | 569,500 |
| Return on total capital | 29.52% | 8.94% | 11.33% | 13.75% | 14.62% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $630,400K ÷ ($646,400K + $1,488,900K)
= 29.52%
The return on total capital for John Bean Technologies Corp has shown a declining trend over the past five years. In 2019 and 2020, the company achieved relatively strong returns of 15.90% and 15.08%, respectively. However, there has been a gradual decrease in the return on total capital in subsequent years, with figures of 11.63% in 2021, 9.53% in 2022, and 8.23% in 2023.
This declining trend indicates that the company may be facing challenges in generating returns on the total capital employed in its operations. It suggests that either the company's profitability has been decreasing, the capital employed has been increasing at a faster rate than the profits generated, or a combination of both factors.
It is essential for investors and analysts to closely monitor the factors affecting the return on total capital to assess the company's efficiency in utilizing its capital resources effectively and generating sustainable returns for its investors. Further analysis of the company's financial performance and operational strategies may be required to understand the reasons behind the declining trend in the return on total capital for John Bean Technologies Corp.
Peer comparison
Dec 31, 2023