Sterling Construction Company Inc (STRL)
Return on total capital
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 375,179 | 354,437 | 249,342 | 215,042 | 221,197 | 211,853 | 192,534 | 181,303 | 163,558 | 160,359 | 146,771 | 129,250 | 117,751 | 110,888 | 115,210 | 112,411 | 112,876 | 102,697 | 87,178 | 72,157 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 805,416 | 808,081 | 716,524 | 670,668 | 644,566 | 618,913 | 580,347 | 537,573 | 494,664 | 474,599 | 437,111 | 405,233 | 375,909 | 358,767 | 321,688 | 297,996 | 275,080 | 267,270 | 257,628 | 239,637 |
| Return on total capital | 46.58% | 43.86% | 34.80% | 32.06% | 34.32% | 34.23% | 33.18% | 33.73% | 33.06% | 33.79% | 33.58% | 31.90% | 31.32% | 30.91% | 35.81% | 37.72% | 41.03% | 38.42% | 33.84% | 30.11% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $375,179K ÷ ($—K + $805,416K)
= 46.58%
The analysis of Sterling Construction Company Inc.'s return on total capital (ROTC) over the period from June 30, 2020, to March 31, 2025, reveals a generally upward trend with periods of fluctuation. Initially, the ROTC was recorded at 30.11% as of June 30, 2020, and exhibited a consistent increase through the subsequent quarters. Notably, by December 31, 2020, the ROTC reached 38.42%, and it continued to rise into 2021, peaking at 41.03% on March 31, 2021. During this period, the company demonstrated improved efficiency in generating profit from its total capital base.
Subsequent quarters showed some variability, with the ROTC declining slightly to 37.72% on June 30, 2021, and further to 35.81% on September 30, 2021. Nonetheless, it remained relatively high, settling around 30.91% at year-end 2021. Throughout 2022, the ROTC maintained a stable range, fluctuating modestly between approximately 31% and 34%. As of December 31, 2022, the ratio was 33.79%, and it slightly increased to 33.06% by March 31, 2023, and 33.73% by June 30, 2023, indicating stable operational efficiency.
In the subsequent periods, the ROTC continued to hover within the low to mid-30% levels, reaching 34.80% on September 30, 2024, suggesting ongoing effective utilization of total capital. A significant upward movement is observed in the latest quarter recorded, March 31, 2025, where the ROTC surged to 46.58%, indicating a substantial improvement in profitability relative to the total capital employed.
Overall, the historical data illustrates that Sterling Construction Company Inc. experienced growth in return on total capital over the analyzed period, with periods of fluctuation likely attributable to operational and market conditions. The recent surge in 2025 suggests enhanced efficiency and profitability, potentially driven by operational improvements, strategic initiatives, or favorable market environments.
Peer comparison
Mar 31, 2025