National Presto Industries Inc (NPK)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 35,033 | 26,930 | 30,029 | 56,196 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 367,627 | 356,256 | 348,052 | 357,623 | 374,348 |
| Return on total capital | 0.00% | 9.83% | 7.74% | 8.40% | 15.01% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $367,627K)
= 0.00%
The return on total capital for National Presto Industries Inc has shown a fluctuating trend over the past five years. It decreased from 15.01% in December 31, 2020, to 8.40% in December 31, 2021, indicating a decline in the company's ability to generate returns on its total invested capital. This trend continued in December 31, 2022, when the return on total capital further decreased to 7.74%. However, there was a slight improvement in December 31, 2023, with the return on total capital rising to 9.83%.
The most significant observation is the drastic drop to 0.00% in December 31, 2024, which indicates that National Presto Industries Inc did not generate any returns on its total capital in that year. This could be a cause for concern as it may signify operational challenges, inefficient capital allocation, or other underlying issues affecting the company's profitability and performance. Further analysis of the company's financial and operational strategies is necessary to understand the reasons behind this sharp decline and to devise appropriate corrective measures.
Peer comparison
Dec 31, 2024