NV5 Global Inc (NVEE)
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 | 61,180 | 66,182 | 68,344 | 44,149 | 31,207 |
| Long-term debt | US$ in thousands | — | — | — | 283,326 | 332,854 |
| Total stockholders’ equity | US$ in thousands | 775,795 | 694,240 | 624,720 | 394,069 | 355,963 |
| Return on total capital | 7.89% | 9.53% | 10.94% | 6.52% | 4.53% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $61,180K ÷ ($—K + $775,795K)
= 7.89%
Return on total capital is a key financial metric that indicates the efficiency and profitability of a company in generating returns from all of its invested capital. Looking at the data provided for NV5 Global Inc for the past five years, we can observe fluctuations in the return on total capital.
In 2023, NV5 Global Inc generated a return on total capital of 7.89%, which decreased from 9.53% in 2022 but was still higher than the 6.52% in 2020 and 4.53% in 2019. This suggests that the company was able to effectively utilize its total capital to generate returns for its investors in 2023, albeit at a lower rate compared to the previous year.
Overall, the trend in NV5 Global Inc's return on total capital seems to have shown improvement over the years, with occasional fluctuations. It is important for the company to continue monitoring and managing its total capital efficiently to sustain or enhance its profitability in the future.
Peer comparison
Dec 31, 2023