Pentair PLC (PNR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 803,800 | 739,200 | 595,300 | 636,900 | 461,400 |
| Long-term debt | US$ in thousands | 1,638,700 | 1,988,300 | 2,317,300 | 894,100 | 839,600 |
| Total stockholders’ equity | US$ in thousands | 3,562,900 | 3,217,100 | 2,708,100 | 2,421,900 | 2,106,300 |
| Return on total capital | 15.45% | 14.20% | 11.85% | 19.21% | 15.66% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $803,800K ÷ ($1,638,700K + $3,562,900K)
= 15.45%
Pentair PLC's return on total capital has shown fluctuations over the years. In 2020, the return on total capital was 15.66%, which increased to 19.21% in 2021, indicating improved efficiency in generating returns from the total capital employed. However, in 2022, there was a decline in the return on total capital to 11.85%, possibly indicating challenges in capital utilization or profitability.
Subsequently, in 2023, there was a moderate increase to 14.20% in the return on total capital, suggesting some improvement in capital efficiency. By the end of 2024, the return on total capital further improved to 15.45%, indicating a positive trend in utilizing total capital to generate returns.
Overall, Pentair PLC's return on total capital has experienced fluctuations but has shown some improvement over the years, with a peak in 2021. Monitoring this ratio trend is crucial for assessing the company's capital management and profitability performance.
Peer comparison
Dec 31, 2024