Stanley Black & Decker Inc (SWK)

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 735,100 554,300 421,000 390,600 177,600 80,300 971,400 1,007,200 1,294,800 1,575,400 1,057,800 1,534,500 1,936,000 2,284,400 2,342,800 1,926,800 1,478,300 1,185,500 1,030,500 1,338,800
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 8,719,900 8,859,200 8,721,900 8,876,400 9,056,100 9,327,300 9,533,800 9,490,300 9,712,100 9,546,600 9,079,800 9,352,800 11,590,500 11,316,300 11,084,000 11,401,800 11,059,600 10,372,900 9,959,500 8,953,400
Return on total capital 8.43% 6.26% 4.83% 4.40% 1.96% 0.86% 10.19% 10.61% 13.33% 16.50% 11.65% 16.41% 16.70% 20.19% 21.14% 16.90% 13.37% 11.43% 10.35% 14.95%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $735,100K ÷ ($—K + $8,719,900K)
= 8.43%

The return on total capital for Stanley Black & Decker Inc has shown some fluctuations over the analyzed period. The ratios ranged from a low of 0.86% on September 30, 2023, to a high of 21.14% on June 30, 2021.

Overall, the return on total capital has experienced variability, with some quarters performing significantly better than others. It is noteworthy that the ratio has generally been above 10%, indicating that the company has been generating positive returns on the total capital employed in its operations.

Investors and stakeholders should monitor future trends in the return on total capital to assess the company's ability to effectively utilize its capital to generate profits.


Peer comparison

Dec 31, 2024

Company name
Symbol
Return on total capital
Stanley Black & Decker Inc
SWK
8.43%
Simpson Manufacturing Company Inc
SSD
19.60%
Snap-On Inc
SNA
-6.70%