NV5 Global Inc (NVEE)
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 | 61,180 | 57,203 | 60,452 | 62,614 | 66,183 | 74,763 | 75,390 | 71,342 | 68,343 | 56,625 | 51,913 | 44,323 | 44,150 | 40,956 | 34,542 | 33,177 | 31,206 | 34,892 | 37,042 | 36,795 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 283,326 | — | — | — | 332,854 | 40,638 | 40,189 | 31,301 |
| Total stockholders’ equity | US$ in thousands | 775,795 | 759,917 | 741,148 | 719,870 | 694,240 | 682,357 | 660,943 | 639,503 | 624,720 | 604,122 | 585,986 | 547,189 | 394,069 | 384,565 | 372,370 | 364,366 | 355,963 | 348,067 | 339,001 | 326,171 |
| Return on total capital | 7.89% | 7.53% | 8.16% | 8.70% | 9.53% | 10.96% | 11.41% | 11.16% | 10.94% | 9.37% | 8.86% | 8.10% | 6.52% | 10.65% | 9.28% | 9.11% | 4.53% | 8.98% | 9.77% | 10.29% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $61,180K ÷ ($—K + $775,795K)
= 7.89%
Return on total capital is a key financial ratio that measures the efficiency of a company in generating returns from its total capital employed. The trend analysis of NV5 Global Inc's return on total capital over the past 20 quarters shows some fluctuations.
From March 2019 to December 2020, the return on total capital varied between 4.53% and 10.94%, with a downward trend initially, followed by an upward trend. This indicated some inconsistency in the company's ability to generate returns from its total capital during this period.
However, from March 2021 to September 2022, there was a more stable and increasing trend in the return on total capital, reaching as high as 11.41%. This period reflected improved efficiency in utilizing capital to generate returns for the company.
Subsequently, from September 2022 to December 2023, the return on total capital showed a downward trend, fluctuating between 7.53% and 8.70%. This may suggest some challenges or changes in the company's operations impacting its ability to generate returns from total capital during this period.
Overall, NV5 Global Inc's return on total capital has shown some volatility and fluctuation over the analyzed period, with periods of increase followed by periods of decrease. Further analysis of the company's financial performance and operational efficiency may provide insights into the factors influencing these trends.
Peer comparison
Dec 31, 2023