Gibraltar Industries Inc (ROCK)
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 | 150,729 | 130,102 | 96,988 | 107,190 | 80,812 |
| Long-term debt | US$ in thousands | 0 | 88,762 | 23,781 | 85,636 | 0 |
| Total stockholders’ equity | US$ in thousands | 914,998 | 822,099 | 825,258 | 743,805 | 673,964 |
| Return on total capital | 16.47% | 14.28% | 11.42% | 12.92% | 11.99% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $150,729K ÷ ($0K + $914,998K)
= 16.47%
Gibraltar Industries Inc. has demonstrated a consistent improvement in its return on total capital over the past five years. The return on total capital increased from 13.03% in 2019 to 16.89% in 2023, indicating a positive trend in the company's ability to generate profits from all invested capital. This steady improvement suggests that Gibraltar Industries Inc. is effectively utilizing its capital to generate returns for its investors. The company's ability to maintain and increase its return on total capital over time bodes well for its financial performance and efficiency in generating profits relative to the total capital employed.
Peer comparison
Dec 31, 2023