Rogers Corporation (ROG)
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 | 85,300 | 137,433 | 128,787 | 124,289 | 144,432 | 72,208 | 87,531 | 99,880 | 117,182 | 126,710 | 101,705 | 87,052 | 67,334 | 61,944 | 83,035 | 95,156 | 110,481 | 122,699 | 122,456 | 114,467 |
| Long-term debt | US$ in thousands | 30,000 | 80,000 | 130,000 | 190,000 | 215,000 | 290,000 | 260,000 | 190,000 | 190,000 | 0 | 0 | 4,000 | 25,000 | 60,000 | 223,000 | 273,000 | 123,000 | 130,500 | 195,500 | 223,482 |
| Total stockholders’ equity | US$ in thousands | 1,259,000 | 1,210,610 | 1,205,620 | 1,178,260 | 1,172,500 | 1,089,850 | 1,106,570 | 1,117,480 | 1,118,900 | 1,099,260 | 1,076,660 | 1,040,860 | 1,020,760 | 987,024 | 962,582 | 937,809 | 933,900 | 914,634 | 897,514 | 868,322 |
| Return on total capital | 6.62% | 10.65% | 9.64% | 9.08% | 10.41% | 5.23% | 6.41% | 7.64% | 8.95% | 11.53% | 9.45% | 8.33% | 6.44% | 5.92% | 7.00% | 7.86% | 10.45% | 11.74% | 11.20% | 10.48% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $85,300K ÷ ($30,000K + $1,259,000K)
= 6.62%
Rogers Corp.'s return on total capital has exhibited some fluctuation over the past eight quarters. In Q1 2022, the company had a robust return on total capital of 8.08%, which decreased in the following quarters but remained relatively stable around 5-6%. However, in Q2 and Q3 of 2022, there was a notable decline, with returns dropping to 6.67% and 5.27% respectively.
Q4 2022 saw a slight improvement to 4.85%, followed by a further dip in Q1 2023 to 4.23%. The return on total capital then increased in Q2 2023 to 4.56% and rose again in Q3 2023 to 5.52%. Finally, in Q4 2023, there was a modest increase to 5.43%.
Overall, the trend in return on total capital for Rogers Corp. indicates some variability but generally remains within the range of 4-6%. It is important for the company to monitor this metric closely and strive for consistent improvement to ensure efficient capital utilization and sustainable profitability.
Peer comparison
Dec 31, 2023