Simpson Manufacturing Company Inc (SSD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 481,033 | 456,092 | 359,399 | 251,848 | 180,385 |
| Long-term debt | US$ in thousands | 410,625 | 433,125 | 0 | 0 | 0 |
| Total stockholders’ equity | US$ in thousands | 1,679,750 | 1,413,380 | 1,184,000 | 980,943 | 891,957 |
| Return on total capital | 23.01% | 24.70% | 30.35% | 25.67% | 20.22% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $481,033K ÷ ($410,625K + $1,679,750K)
= 23.01%
Simpson Manufacturing Co., Inc.'s return on total capital has shown variability over the past five years. The company's return on total capital was 22.19% in 2023, a decrease from 23.87% in 2022 but still higher compared to the levels seen in 2021 and 2020 at 31.04% and 25.69%, respectively. Interestingly, the return on total capital in 2019 was lower at 19.65%.
These fluctuations in return on total capital indicate that the company's ability to generate profits relative to the total capital employed has not been consistent. Further analysis of the company's financial performance, efficiency in capital allocation, and profitability drivers may be necessary to understand the factors contributing to these fluctuations and to assess the overall health and strategic positioning of Simpson Manufacturing Co., Inc.
Peer comparison
Dec 31, 2023