Enpro Industries (NPO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 98,000 | 265,100 | 202,800 | 191,600 | 54,400 |
| Long-term debt | US$ in thousands | 638,700 | 775,100 | 963,900 | 487,500 | 625,200 |
| Total stockholders’ equity | US$ in thousands | 1,409,700 | 1,395,100 | 1,270,300 | 1,081,400 | 896,600 |
| Return on total capital | 4.78% | 12.22% | 9.08% | 12.21% | 3.57% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $98,000K ÷ ($638,700K + $1,409,700K)
= 4.78%
The return on total capital for Enpro Inc has shown a gradual improvement over the past five years, with a noticeable increase from 3.73% in 2019 to 6.69% in 2023. This indicates that the company has been able to generate a higher return relative to its total capital employed in recent years. The consistent upward trend in return on total capital reflects positively on the company's operational efficiency and ability to generate profits from its invested capital. This improvement may suggest effective management of resources and investment decisions, leading to enhanced profitability and shareholder value. Overall, Enpro Inc's increasing return on total capital is a positive indicator of the company's financial performance and operational strength.