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.
Peer comparison
Dec 31, 2023