Stepan Company (SCL)
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 | 81,310 | 71,636 | 72,172 | 71,269 | 72,647 | 76,488 | 106,159 | 167,069 | 209,312 | 220,566 | 206,074 | 183,990 | 174,436 | 183,145 | 179,953 | 167,765 | 153,860 | 142,641 | 133,764 | 130,504 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,169,930 | 1,219,360 | 1,192,440 | 1,214,520 | 1,216,490 | 1,202,770 | 1,215,100 | 1,189,910 | 1,166,060 | 1,130,240 | 1,125,710 | 1,116,740 | 1,074,190 | 1,057,300 | 1,048,800 | 1,002,280 | 986,693 | 938,193 | 897,429 | 866,778 |
| Return on total capital | 6.95% | 5.87% | 6.05% | 5.87% | 5.97% | 6.36% | 8.74% | 14.04% | 17.95% | 19.51% | 18.31% | 16.48% | 16.24% | 17.32% | 17.16% | 16.74% | 15.59% | 15.20% | 14.91% | 15.06% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $81,310K ÷ ($—K + $1,169,930K)
= 6.95%
Stepping Company's Return on Total Capital has shown fluctuation over the past few years, ranging from a high of 19.51% in September 2022 to a low of 5.87% in September 2024. The company's Return on Total Capital saw an increasing trend from the end of 2021 through mid-2022, peaking at 19.51% before experiencing a downward turn in the following quarters.
It is essential to note that Return on Total Capital measures the efficiency of the company in generating profits from its total capital employed, which includes both debt and equity. The fluctuations in this ratio may indicate changes in the company's profitability and capital structure. Stepan Company should closely monitor its Return on Total Capital to ensure sustainable and efficient use of its capital resources in driving profitability and shareholder value.
Peer comparison
Dec 31, 2024