Gibraltar Industries Inc (ROCK)
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 | 143,023 | 150,729 | 130,102 | 96,988 | 107,190 |
| Long-term debt | US$ in thousands | — | 0 | 88,762 | 23,781 | 85,636 |
| Total stockholders’ equity | US$ in thousands | 1,048,030 | 914,998 | 822,099 | 825,258 | 743,805 |
| Return on total capital | 13.65% | 16.47% | 14.28% | 11.42% | 12.92% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $143,023K ÷ ($—K + $1,048,030K)
= 13.65%
To evaluate Gibraltar Industries Inc's return on total capital over the five-year period from December 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The return on total capital decreased from 12.92% in 2020 to 11.42% in 2021, indicating a decline in the company's efficiency in generating profits relative to its invested capital. However, from 2021 to 2022, there was a notable improvement as the return on total capital increased to 14.28%, suggesting enhanced performance in capital utilization.
Continuing this positive trend, the return on total capital further rose to 16.47% by the end of 2023, indicating a significant increase in the company's profitability relative to its total capital employed. However, in 2024, the return on total capital slightly decreased to 13.65%, possibly indicating some challenges faced by the company during that year.
Overall, Gibraltar Industries Inc's return on total capital demonstrated variability over the five-year period, with some years showing improvements and others experiencing slight declines. Further analysis of the company's operations and financial performance may provide insights into the factors driving these fluctuations in the return on total capital ratio.
Peer comparison
Dec 31, 2024