Pentair PLC (PNR)
Return on total capital
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 739,200 | 683,800 | 650,800 | 633,100 | 595,300 | 634,400 | 654,600 | 625,600 | 636,900 | 607,700 | 568,500 | 517,800 | 461,400 | 462,200 | 442,900 | 465,600 | 432,500 | 423,200 | 422,800 | 411,600 |
| Long-term debt | US$ in thousands | 1,988,300 | 1,993,600 | 2,114,700 | 2,491,800 | 2,317,300 | 2,448,100 | 911,500 | 1,091,100 | 894,100 | 700,900 | 716,600 | 932,400 | 839,600 | 805,200 | 1,013,000 | 1,450,500 | 1,029,100 | 1,118,700 | 1,215,100 | 1,370,700 |
| Total stockholders’ equity | US$ in thousands | 3,217,100 | 3,040,900 | 2,935,300 | 2,809,500 | 2,708,100 | 2,639,200 | 2,563,000 | 2,503,900 | 2,421,900 | 2,338,100 | 2,271,600 | 2,193,800 | 2,106,300 | 2,049,800 | 1,949,700 | 1,892,500 | 1,953,900 | 1,868,800 | 1,806,600 | 1,870,400 |
| Return on total capital | 14.20% | 13.58% | 12.89% | 11.94% | 11.85% | 12.47% | 18.84% | 17.40% | 19.21% | 20.00% | 19.02% | 16.56% | 15.66% | 16.19% | 14.95% | 13.93% | 14.50% | 14.17% | 13.99% | 12.70% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $739,200K ÷ ($1,988,300K + $3,217,100K)
= 14.20%
Pentair plc's return on total capital has shown some variability over the past eight quarters. The company's return on total capital ranged from 11.85% to 18.84% during this period. In Q4 2023, the return on total capital was 14.20%, which indicates the company generated a 14.20% return for every dollar of total capital employed in that quarter.
Overall, Pentair plc's return on total capital has been relatively stable, with fluctuations within a reasonable range. It is important for the company to continue monitoring and enhancing its capital allocation and operational efficiency to maintain or improve its return on total capital in the future.
Peer comparison
Dec 31, 2023