SPX Corp (SPXC)
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 | 301,100 | 222,800 | 36,400 | 83,200 | 100,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,384,400 | 1,194,600 | 1,079,200 | 1,102,900 | 629,200 |
| Return on total capital | 21.75% | 18.65% | 3.37% | 7.54% | 15.91% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $301,100K ÷ ($—K + $1,384,400K)
= 21.75%
SPX Corp's return on total capital has exhibited fluctuations over the past five years. The ratio decreased from 15.91% at the end of 2020 to 7.54% at the end of 2021, indicating a decline in the company's efficiency in generating returns relative to its total capital employed. However, there was a further decrease to 3.37% at the end of 2022, reflecting a significant drop in profitability and capital utilization efficiency.
The trend reversed in 2023, with the return on total capital increasing to 18.65%, suggesting an improvement in the company's performance in utilizing its capital resources to generate returns. This positive momentum continued into 2024, with a notable increase to 21.75%, indicating a substantial enhancement in efficiency and profitability.
Overall, the fluctuations in SPX Corp's return on total capital highlight the company's varying success in effectively deploying its capital to generate returns for its stakeholders. It is essential for stakeholders to monitor this metric closely to assess the company's financial performance and capital utilization efficiency.
Peer comparison
Dec 31, 2024