Mueller Water Products (MWA)
Return on total capital
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 207,500 | 198,900 | 184,600 | 179,600 | 146,900 | 115,500 | 122,900 | 110,600 | 113,400 | 116,600 | 117,200 | 133,000 | 142,000 | 141,200 | 141,200 | 91,200 | 73,100 | 75,600 | 69,000 | 146,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 873,600 | 834,100 | 810,100 | 791,600 | 754,500 | 731,200 | 711,500 | 714,200 | 700,900 | 687,800 | 669,300 | 703,800 | 706,100 | 691,900 | 694,900 | 683,200 | 669,400 | 655,200 | 640,700 | 609,700 |
| Return on total capital | 23.75% | 23.85% | 22.79% | 22.69% | 19.47% | 15.80% | 17.27% | 15.49% | 16.18% | 16.95% | 17.51% | 18.90% | 20.11% | 20.41% | 20.32% | 13.35% | 10.92% | 11.54% | 10.77% | 24.06% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $207,500K ÷ ($—K + $873,600K)
= 23.75%
The analysis of Mueller Water Products' return on total capital (ROTC) over the period from June 2020 through March 2025 reveals notable fluctuations and underlying trends.
In mid-2020, the ROTC experienced a significant decline, dropping from 24.06% on June 30, 2020, to a low of 10.77% by September 30, 2020. This sharp decrease suggests a period of diminished efficiency in leveraging total capital, possibly due to industry-wide challenges or company-specific disruptions during that timeframe. Subsequently, the ratio showed signs of modest recovery, reaching 11.54% at the end of 2020 and stabilizing around 10.92% in March 2021.
Starting in mid-2021, a positive upward trend becomes evident. The ROTC increased to 13.35% by June 2021, then sharply rose to 20.32% and 20.41% at the end of September and December 2021 respectively. This rapid improvement indicates enhanced operational efficiency and better utilization of deployed capital during this period.
Throughout 2022, the ROTC maintained levels above 16%, peaking at 20.11% at the end of March 2022, but gradually declining thereafter to 17.51% in September and 16.95% in December 2022. The decline persisted into 2023, with the ratio decreasing further to 16.18% in March and reaching a low of 15.49% in June. It slightly rebounded to 17.27% in September 2023 before completing the year at 15.80%, indicating some volatility but overall a stabilized lower range compared to previous years.
However, a notable turnaround begins in March 2024, where the ROTC jumps to 19.47%, continuing an upward trajectory through mid-2024 with values of 22.69% on June 30, 2024, 22.79% on September 30, 2024, and reaching 23.85% at year-end. This upward momentum persists into March 2025 with a value of 23.75%.
In conclusion, Mueller Water Products' return on total capital exhibited a pronounced decline in 2020, followed by a period of recovery and relative stability until early 2023. From mid-2023 onwards, the ratio shows a significant and sustained upward trend, indicating improved efficiency in capital deployment and operational performance in recent periods. This pattern suggests the company may have implemented strategic initiatives that enhanced its profitability and capital utilization in the most recent years.
Peer comparison
Mar 31, 2025