Enpro Industries (NPO)
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 | 135,300 | 82,700 | 63,900 | 82,200 | -10,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,428,600 | 1,409,700 | 1,395,100 | 1,266,600 | 1,078,500 |
| Return on total capital | 9.47% | 5.87% | 4.58% | 6.49% | -0.96% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $135,300K ÷ ($—K + $1,428,600K)
= 9.47%
Based on the provided data, Enpro Industries' return on total capital has experienced fluctuations over the years. In 2020, the company had a negative return on total capital of -0.96%, indicating that it did not generate sufficient returns to cover its total capital. However, in the subsequent years, there was an improvement in performance. In 2021, the return on total capital increased to 6.49%, suggesting a better utilization of the company's total capital.
In 2022, there was a slight decline in the return on total capital to 4.58%, but it remained positive, indicating that Enpro Industries continued to generate returns above its total capital cost. The trend reversed in 2023, with the return on total capital improving to 5.87%, reflecting a stronger performance.
The most significant improvement was observed in 2024, where Enpro Industries achieved a return on total capital of 9.47%, indicating a substantial increase in efficiency in utilizing its total capital to generate returns for its investors. Overall, the company's return on total capital has shown positive trends over the years, with a notable improvement in 2024, highlighting a potentially stronger financial performance.