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

Company name
Symbol
Return on total capital
nVent Electric PLC
NVT
11.27%
John Bean Technologies Corporation
JBT
8.30%
Pentair PLC
PNR
14.20%