nVent Electric PLC (NVT)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 620,600 | 643,600 | 622,500 | 587,400 | 552,100 | 516,400 | 474,400 | 440,400 | 404,300 | 381,500 | 365,100 | 355,400 | 340,800 | 101,500 | 58,500 | 38,400 | 46,500 | 274,200 | 315,900 | 333,100 |
| Long-term debt | US$ in thousands | 2,220,700 | 1,730,600 | 1,739,800 | 1,748,800 | 1,861,500 | 1,968,800 | 1,079,600 | 1,068,200 | 1,086,700 | 1,048,200 | 1,045,800 | 994,200 | 976,500 | 1,103,900 | 943,200 | 928,000 | 1,052,800 | 1,207,600 | 1,211,200 | 1,047,100 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,592,500 |
| Return on total capital | 11.27% | 12.82% | 12.57% | 12.01% | 11.49% | 10.66% | 12.26% | 11.59% | 10.82% | 10.50% | 10.20% | 10.18% | 9.69% | 2.82% | 1.72% | 1.15% | 1.34% | 7.24% | 8.34% | 9.15% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $620,600K ÷ ($2,220,700K + $3,283,700K)
= 11.27%
nVent Electric PLC has shown a fluctuating trend in its return on total capital over the past several quarters. The return on total capital ranged from as low as 1.15% in March 2021 to a peak of 12.82% in June 2024. The company's return on total capital has generally been increasing since the beginning of 2022, indicating improved efficiency in generating returns from its total capital employed.
It is worth noting that nVent Electric PLC's return on total capital surpassed 10% in most recent quarters, suggesting that the company is effectively utilizing its total capital to generate profits for its stakeholders. The consistent improvement in return on total capital signifies the company's focus on optimizing its operations and capital structure to enhance shareholder value.
Overall, the increasing trend in nVent Electric PLC's return on total capital reflects positively on its financial performance and management's ability to generate profitable returns on the capital invested in the business.
Peer comparison
Sep 30, 2024