nVent Electric PLC (NVT)
Return on total capital
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 336,800 |
| Long-term debt | US$ in thousands | 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 | 1,150,600 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,566,500 |
| Return on total capital | 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% | 9.06% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $643,600K ÷ ($1,730,600K + $3,287,800K)
= 12.82%
nVent Electric PLC's return on total capital has shown a generally increasing trend over the past few quarters, indicating the company's improving ability to generate profit from the capital invested in its operations. The return on total capital ranged from a low of 1.15% in March 2021 to a high of 12.82% in June 2024.
The upward trend in return on total capital suggests that nVent Electric PLC has been effectively utilizing its capital resources to generate profits for its shareholders. The company's ability to consistently deliver returns above 10% in recent quarters reflects a strong performance in capital allocation and operational efficiency.
Investors and stakeholders may view this positive trend in return on total capital as a sign of nVent Electric PLC's improving financial health and operational performance. However, it is important to monitor future quarters to determine if the company can sustain or further improve its return on total capital to drive long-term value for its investors.
Peer comparison
Jun 30, 2024