JBTMarel Corp (JBTM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 114,800 | 177,400 | 136,300 | 130,700 | 159,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,544,200 | 1,488,900 | 905,400 | 750,200 | 637,100 |
| Return on total capital | 7.43% | 11.91% | 15.05% | 17.42% | 25.02% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $114,800K ÷ ($—K + $1,544,200K)
= 7.43%
The analysis of JBTMarel Corp’s Return on Total Capital (ROTC) over the period from December 31, 2020, to December 31, 2024, reveals a consistent downward trend.
At the end of 2020, the company’s ROTC stood at 25.02%, indicating a relatively strong ability to generate earnings from its total capital base. However, this metric declined substantially in subsequent years, reaching 17.42% by the end of 2021, which reflects a reduction in operational efficiency or profitability relative to the total capital employed. The downward trajectory persisted into 2022, with the ROTC decreasing further to 15.05%. The decline continued into 2023, with the ratio falling to 11.91%, suggesting ongoing challenges in maintaining previous levels of profitability relative to total capital.
By the end of 2024, the ROTC had decreased to 7.43%, indicating a significant contraction over the four-year period. This trend could be indicative of several underlying factors, including increased capital investment without proportional revenue growth, declining margins, increased operational costs, or changes in the company’s strategic focus. The persistent decline underscores potential pressures on the company’s overall efficiency and profitability.
In summary, JBTMarel Corp’s return on total capital has experienced a marked reduction over the observed period, from a high of 25.02% in 2020 to 7.43% in 2024. This deterioration warrants further investigation into underlying operational and strategic issues affecting the firm’s capacity to generate returns from its invested capital.
Peer comparison
Dec 31, 2024