Pentair PLC (PNR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 739,200 | 595,300 | 636,900 | 461,400 | 431,600 |
| Long-term debt | US$ in thousands | 1,988,300 | 2,317,300 | 894,100 | 839,600 | 1,029,100 |
| Total stockholders’ equity | US$ in thousands | 3,217,100 | 2,708,100 | 2,421,900 | 2,106,300 | 1,953,900 |
| Return on total capital | 14.20% | 11.85% | 19.21% | 15.66% | 14.47% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $739,200K ÷ ($1,988,300K + $3,217,100K)
= 14.20%
The return on total capital for Pentair plc has varied over the past five years, ranging from 11.85% in 2022 to 19.21% in 2021. In 2023, the return on total capital increased to 14.20%, indicating a positive trend. This metric measures the efficiency of the company in generating returns from both its equity and debt capital. The higher the return on total capital, the better the company is at utilizing its capital to generate profits. Overall, Pentair plc has shown consistent performance in generating returns on its total capital over the years, reflecting effective capital allocation and operational performance.
Peer comparison
Dec 31, 2023