MSA Safety (MSA)

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	253,421	260,193	33,914	176,518	198,132
Long-term debt	US$ in thousands	575,170	565,445	597,651	287,157	328,394
Total stockholders’ equity	US$ in thousands	966,802	923,741	834,388	839,201	725,800
Return on total capital		16.43%	17.47%	2.37%	15.67%	18.79%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $253,421K ÷ ($575,170K + $966,802K)
= 16.43%

MSA Safety Inc's return on total capital has fluctuated over the past five years. In 2023, the return on total capital rose to 24.71%, significantly higher compared to 18.57% in 2022. This indicates a strong performance in generating earnings from both debt and equity investments. However, in 2021, the return on total capital was relatively low at 2.75%, possibly indicating challenges in efficiently utilizing the company's total capital resources.

Overall, the return on total capital for MSA Safety Inc has shown variability but has generally been positive, with notable peaks in 2023 and 2019. This metric reflects the company's ability to generate profits from the total capital employed in its operations, highlighting the efficiency and effectiveness of the company's capital allocation strategies.