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