Simpson Manufacturing Company Inc (SSD)
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 | 436,314 | 481,033 | 456,092 | 359,399 | 251,848 |
| Long-term debt | US$ in thousands | 388,125 | 410,625 | 433,125 | 0 | 0 |
| Total stockholders’ equity | US$ in thousands | 1,805,350 | 1,679,750 | 1,413,380 | 1,184,000 | 980,943 |
| Return on total capital | 19.89% | 23.01% | 24.70% | 30.35% | 25.67% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $436,314K ÷ ($388,125K + $1,805,350K)
= 19.89%
Simpson Manufacturing Company Inc's return on total capital has shown fluctuations over the years. The trend indicates a positive performance, with the return on total capital increasing from 25.67% in December 31, 2020, to 30.35% in December 31, 2021. However, there was a slight decline to 24.70% in December 31, 2022, followed by further decreases to 23.01% in December 31, 2023, and 19.89% in December 31, 2024.
It is essential to investigate the reasons behind these fluctuations to understand the factors influencing the return on total capital. A decreasing trend could be a signal of potential inefficiencies in capital utilization or declining profitability. Further analysis, including examining the company's operational performance and financial health, would provide more insights into the implications of these variations in return on total capital for Simpson Manufacturing Company Inc.
Peer comparison
Dec 31, 2024