Kadant Inc (KAI)
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 | 171,252 | 166,677 | 171,312 | 116,035 | 80,567 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 847,127 | 773,702 | 653,849 | 563,936 | 495,359 |
| Return on total capital | 20.22% | 21.54% | 26.20% | 20.58% | 16.26% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $171,252K ÷ ($—K + $847,127K)
= 20.22%
Kadant Inc has shown a positive trend in its return on total capital over the past five years. The return on total capital increased from 16.26% in December 31, 2020, to 20.58% in December 31, 2021, and continued to rise to 26.20% in December 31, 2022. However, in December 31, 2023, there was a slight decrease to 21.54%, followed by a further decline to 20.22% in December 31, 2024. Overall, Kadant Inc has been able to generate solid returns on its total capital during this period, although there was a slight dip in the most recent year. Continued monitoring of this metric is advisable to understand the sustainability of the company's performance.
Peer comparison
Dec 31, 2024