Enpro Industries (NPO)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 148,100 | 142,000 | 141,300 | 137,000 | 148,200 | 142,200 | 153,400 | 158,500 | 142,100 | 222,800 | 224,600 | 190,200 | 190,100 | 78,500 | -9,900 | -22,700 | -27,400 | -47,300 | -1,300 | 17,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,428,600 | 1,457,900 | 1,430,400 | 1,413,900 | 1,409,700 | 1,407,900 | 1,414,400 | 1,435,100 | 1,395,100 | 1,267,800 | 1,275,000 | 1,261,300 | 1,266,600 | 1,140,700 | 1,118,100 | 1,080,900 | 1,078,500 | 1,065,900 | 1,084,200 | 1,071,900 |
| Return on total capital | 10.37% | 9.74% | 9.88% | 9.69% | 10.51% | 10.10% | 10.85% | 11.04% | 10.19% | 17.57% | 17.62% | 15.08% | 15.01% | 6.88% | -0.89% | -2.10% | -2.54% | -4.44% | -0.12% | 1.62% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $148,100K ÷ ($—K + $1,428,600K)
= 10.37%
Enpro Industries' return on total capital has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The return on total capital started at a relatively low 1.62% in March 2020, turned negative in the subsequent quarters, reaching its lowest point of -4.44% in September 2020.
From that point on, there was a gradual improvement in the return on total capital, with positive figures resurfacing in the later quarters. The return on total capital peaked at 17.62% in June 2022, highlighting a significant recovery and positive performance. However, there was a slight decrease in the return on total capital in the following quarters, hovering around the 10-11% range.
Overall, Enpro Industries' return on total capital has shown some improvement from earlier negative levels, but there have been fluctuations in performance over the period under observation. It is essential for the company to sustain and enhance its return on total capital to ensure efficient utilization of capital and generate optimal returns for its investors.