Simpson Manufacturing Company Inc (SSD)
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 | 429,988 | 424,691 | 440,050 | 452,885 | 475,150 | 482,334 | 464,936 | 452,991 | 459,065 | 477,390 | 455,194 | 423,846 | 367,792 | 310,188 | 300,912 | 271,396 | 252,363 | 249,516 | 219,140 | 200,581 |
| Long-term debt | US$ in thousands | 388,125 | 393,750 | 399,375 | 405,000 | 410,625 | 416,250 | 421,875 | 427,500 | 433,100 | 660,164 | 665,449 | 450,000 | 0 | 0 | 0 | 0 | 0 | 75,000 | 150,000 | 150,000 |
| Total stockholders’ equity | US$ in thousands | 1,805,350 | 1,856,970 | 1,764,800 | 1,725,660 | 1,679,750 | 1,669,490 | 1,583,610 | 1,487,410 | 1,413,380 | 1,337,560 | 1,284,640 | 1,231,810 | 1,184,000 | 1,123,000 | 1,086,900 | 1,014,510 | 980,943 | 960,800 | 894,212 | 841,594 |
| Return on total capital | 19.60% | 18.87% | 20.33% | 21.26% | 22.73% | 23.13% | 23.18% | 23.66% | 24.86% | 23.90% | 23.34% | 25.20% | 31.06% | 27.62% | 27.69% | 26.75% | 25.73% | 24.09% | 20.99% | 20.23% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $429,988K ÷ ($388,125K + $1,805,350K)
= 19.60%
Simpson Manufacturing Company Inc's return on total capital has exhibited some fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital started at 20.23% in March 2020 and showed a steady increase, reaching a peak of 31.06% by December 2021. This upward trend indicates the company's ability to generate healthy returns relative to its total capital investment during this period.
However, the return on total capital experienced a slight decline from March 2022 to December 2024, falling to a low of 18.87% in September 2024 before slightly recovering to 19.60% by the end of December 2024. These fluctuations suggest that Simpson Manufacturing Company Inc may have encountered challenges or made changes to its capital structure, impacting its profitability relative to the total capital invested.
Overall, while there have been ups and downs in Simpson Manufacturing Company Inc's return on total capital, the company has demonstrated the ability to generate favorable returns on the capital employed in its operations, reflecting its efficiency in utilizing resources to generate profits.
Peer comparison
Dec 31, 2024