MSA Safety (MSA)

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 411,896 396,613 377,922 380,948 373,473 335,229 320,923 275,341 239,137 87,256 58,123 42,648 47,440 162,310 179,758 193,649 208,507 222,239 233,091 235,771
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total stockholders’ equity US$ in thousands 1,143,320 1,095,340 1,033,650 994,754 966,802 868,726 831,131 769,746 923,741 842,415 838,070 860,907 834,388 824,177 848,768 814,676 809,891 780,103 748,654 712,596
Return on total capital 36.03% 36.21% 36.56% 38.30% 38.63% 38.59% 38.61% 35.77% 25.89% 10.36% 6.94% 4.95% 5.69% 19.69% 21.18% 23.77% 25.75% 28.49% 31.13% 33.09%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $411,896K ÷ ($—K + $1,143,320K)
= 36.03%

The return on total capital for MSA Safety has shown a decreasing trend from 33.09% as of March 31, 2020, to 36.03% as of December 31, 2024. The ratio peaked in the early period and then experienced a decline before stabilizing. The company experienced a significant drop in return on total capital from December 31, 2021 (5.69%) to March 31, 2022 (4.95%), indicating a period of lower profitability. However, the ratio saw a notable recovery and improvement in the subsequent quarters, reaching 38.63% as of December 31, 2023.

Overall, the return on total capital has shown fluctuations over the period under review, with a general upward trajectory in recent quarters. This suggests that MSA Safety has managed to enhance its efficiency in generating returns from its total capital base, which is a positive sign for the company's financial performance and value creation for its investors.