Terex Corporation (TEX)
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 | 497,000 | 644,300 | 415,500 | 318,700 | 57,300 |
| Long-term debt | US$ in thousands | — | 620,000 | 773,600 | 668,500 | 1,166,200 |
| Total stockholders’ equity | US$ in thousands | 1,832,000 | 1,672,300 | 1,181,200 | 1,109,600 | 921,500 |
| Return on total capital | 27.13% | 28.11% | 21.26% | 17.92% | 2.74% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $497,000K ÷ ($—K + $1,832,000K)
= 27.13%
Terex Corporation's return on total capital has exhibited a positive trend over the past five years. Starting at 2.74% on December 31, 2020, the return increased steadily to 17.92% in 2021, further improving to 21.26% in 2022. The return continued to rise significantly, reaching 28.11% by December 31, 2023, before slightly decreasing to 27.13% at the end of 2024. This indicates that Terex Corporation has been effectively utilizing its capital to generate returns for its stakeholders, showcasing a strong performance in capital efficiency and profitability over the specified period.