PTC Inc (PTC)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 588,615 | 461,983 | 451,366 | 442,233 | 211,134 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,214,400 | 2,677,290 | 2,296,030 | 2,038,470 | 1,438,250 |
| Return on total capital | 18.31% | 17.26% | 19.66% | 21.69% | 14.68% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $588,615K ÷ ($—K + $3,214,400K)
= 18.31%
PTC Inc's return on total capital has shown a fluctuating trend over the past five years. The return on total capital decreased from 21.69% in 2021 to 14.68% in 2020, indicating a significant decline in profitability. However, there was a notable recovery in 2022 with a return on total capital of 19.66%. In 2023 and 2024, the return on total capital continued to improve, reaching 17.26% and 18.31% respectively.
Overall, PTC Inc's return on total capital has been mostly positive, demonstrating the company's ability to generate returns for both debt and equity holders. The gradual improvement in this ratio over the past two years reflects management's efforts to utilize capital efficiently and enhance overall profitability. However, it is essential for the company to sustain this positive momentum and continue optimizing its capital structure to drive long-term value for its stakeholders.
Peer comparison
Sep 30, 2024