National Presto Industries Inc (NPK)

Return on total capital

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 35,033 22,421 25,851 28,460 22,127 24,565 18,702 22,173 30,029 44,060 53,877 57,876 56,196 53,501 56,287 49,595 46,380 47,204 36,808 40,569
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 356,256 342,682 335,296 329,483 348,052 345,525 336,372 329,391 357,623 354,071 349,690 340,119 374,348 360,047 347,695 334,690 367,957 355,891 339,199 330,669
Return on total capital 9.83% 6.54% 7.71% 8.64% 6.36% 7.11% 5.56% 6.73% 8.40% 12.44% 15.41% 17.02% 15.01% 14.86% 16.19% 14.82% 12.60% 13.26% 10.85% 12.27%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $35,033K ÷ ($—K + $356,256K)
= 9.83%

The return on total capital for National Presto Industries Inc has exhibited some fluctuation over the past few quarters. In the latest quarter, the return on total capital stands at 9.83%, showing a slight improvement from the previous quarter's 6.54%. Looking back over the last two years, the return on total capital has ranged from a low of 5.56% to a high of 17.02%.

The return on total capital is a key financial ratio that indicates how effectively a company is generating profits from all of the capital invested in the business. A higher return on total capital suggests that the company is efficiently utilizing its resources to generate profits for its capital providers.

It is important for investors and analysts to closely monitor changes in the return on total capital, as it can provide insights into the company's operational efficiency and profitability. The fluctuation in this ratio for National Presto Industries Inc may warrant further investigation into the factors driving these changes and their potential impact on the company's financial performance and value creation for shareholders.


Peer comparison

Dec 31, 2023

Company name
Symbol
Return on total capital
National Presto Industries Inc
NPK
9.83%
Axon Enterprise Inc.
AXON
6.76%
Sturm Ruger & Company Inc
RGR
17.79%
Vista Outdoor Inc
VSTO
2.74%