Pentair PLC (PNR)
Return on total capital
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 803,800 | 775,700 | 775,900 | 736,400 | 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 |
| Long-term debt | US$ in thousands | 1,638,700 | 1,628,400 | 1,752,600 | 2,084,300 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,562,900 | 3,498,800 | 3,432,900 | 3,327,200 | 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 |
| Return on total capital | 15.45% | 15.13% | 14.96% | 13.61% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $803,800K ÷ ($1,638,700K + $3,562,900K)
= 15.45%
Pentair PLC's return on total capital has displayed some fluctuations over the period outlined. The return on total capital increased steadily from 13.93% as of March 31, 2020, reaching a peak of 20.00% by September 30, 2021. This upward trend indicates that the company was effectively generating returns from its total capital during this period.
However, the return on total capital began to decrease after September 2021, with a notable drop to 11.85% by December 31, 2022. This decline suggests that Pentair PLC's ability to generate returns from its total capital experienced some challenges during this period.
Subsequently, there were some fluctuations in the return on total capital, with levels ranging from 11.94% to 15.45% as of December 31, 2024. The varying figures in this period indicate some instability in the company's performance in terms of utilizing its total capital efficiently to generate returns for shareholders.
Overall, the analysis of Pentair PLC's return on total capital highlights both positive and negative trends in the company's ability to generate returns from its total capital over the specified period. Further examination and comparison with industry benchmarks may provide additional insights into the company's financial performance and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2024