Kadant Inc (KAI)
Return on total capital
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 171,537 | 174,121 | 168,921 | 163,681 | 166,677 | 166,223 | 161,390 | 155,716 | 171,312 | 163,645 | 153,214 | 148,606 | 116,035 | 106,415 | 99,118 | 84,251 | 80,567 | 74,196 | 77,370 | 82,363 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 847,127 | 851,733 | 807,711 | 782,687 | 773,702 | 731,652 | 710,871 | 682,364 | 653,849 | 608,049 | 604,152 | 597,855 | 563,936 | 541,887 | 529,235 | 502,588 | 495,359 | 460,941 | 438,721 | 422,774 |
| Return on total capital | 20.25% | 20.44% | 20.91% | 20.91% | 21.54% | 22.72% | 22.70% | 22.82% | 26.20% | 26.91% | 25.36% | 24.86% | 20.58% | 19.64% | 18.73% | 16.76% | 16.26% | 16.10% | 17.64% | 19.48% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $171,537K ÷ ($—K + $847,127K)
= 20.25%
Kadant Inc's return on total capital has shown a fluctuating trend over the past few years, ranging from a low of 16.10% in September 2020 to a high of 26.91% in September 2022. The company's return on total capital peaked at 26.91% in September 2022 before decreasing slightly to 26.20% in December 2022. Subsequently, the return on total capital exhibited a declining pattern, reaching a low of 20.25% by the end of December 2024.
Overall, Kadant Inc's return on total capital demonstrated relative stability with fluctuations within a moderate range. The company's ability to generate returns on its total capital investment provides insights into its operational efficiency and effectiveness in utilizing both debt and equity funding sources to generate profits. It will be essential for stakeholders to closely monitor Kadant Inc's performance in sustaining or potentially improving its return on total capital in the future.
Peer comparison
Dec 31, 2024