nVent Electric PLC (NVT)
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 | 590,900 | 607,800 | 652,200 | 637,400 | 599,800 | 645,200 | 589,800 | 538,200 | 504,800 | 416,800 | 395,400 | 379,600 | 369,900 | 332,200 | 90,300 | 47,200 | 26,900 | 50,300 | 277,800 | 319,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,237,600 | 3,283,700 | 3,287,800 | 3,212,300 | 3,142,100 | 2,945,100 | 2,875,700 | 2,789,900 | 2,731,700 | 2,650,600 | 2,586,000 | 2,533,900 | 2,496,100 | 2,541,600 | 2,492,800 | 2,450,000 | 2,409,800 | 2,413,400 | 2,578,200 | 2,576,600 |
| Return on total capital | 18.25% | 18.51% | 19.84% | 19.84% | 19.09% | 21.91% | 20.51% | 19.29% | 18.48% | 15.72% | 15.29% | 14.98% | 14.82% | 13.07% | 3.62% | 1.93% | 1.12% | 2.08% | 10.77% | 12.39% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $590,900K ÷ ($—K + $3,237,600K)
= 18.25%
nVent Electric PLC's return on total capital has shown fluctuations over the analyzed period. The ratio increased from 12.39% as of March 31, 2020, to peak at 21.91% as of September 30, 2023, before declining to 18.25% by December 31, 2024.
Overall, nVent Electric PLC's return on total capital trended upwards from the beginning of the period, with some volatility in the mid-years. The company displayed efficient utilization of capital in generating returns, as the ratio generally remained at healthy levels above 10% throughout the period. Investors and stakeholders may view the increasing trend positively, as it indicates effective deployment of total capital in generating profits. Further monitoring of this ratio is recommended to assess the company's ongoing performance in generating returns relative to the capital invested.
Peer comparison
Dec 31, 2024