Terex Corporation (TEX)
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 | 496,200 | 573,900 | 627,900 | 645,000 | 644,300 | 642,900 | 597,800 | 492,000 | 415,600 | 376,300 | 329,700 | 330,000 | 318,700 | 279,200 | 225,400 | 128,400 | 57,300 | 43,600 | 82,000 | 197,700 |
| Long-term debt | US$ in thousands | — | 624,000 | 662,200 | 720,900 | 620,000 | 706,300 | 734,300 | 774,900 | 773,600 | 824,600 | 826,100 | 738,400 | 668,500 | 887,700 | 888,500 | 973,500 | 1,166,200 | 1,167,000 | 1,167,400 | 1,338,100 |
| Total stockholders’ equity | US$ in thousands | 1,832,000 | 1,957,000 | 1,823,900 | 1,731,900 | 1,672,300 | 1,496,200 | 1,432,200 | 1,294,600 | 1,181,200 | 1,034,700 | 1,048,900 | 1,114,100 | 1,109,600 | 1,050,700 | 1,033,900 | 946,100 | 921,500 | 852,700 | 800,400 | 786,200 |
| Return on total capital | 27.09% | 22.24% | 25.26% | 26.30% | 28.11% | 29.19% | 27.59% | 23.77% | 21.26% | 20.24% | 17.58% | 17.81% | 17.92% | 14.40% | 11.72% | 6.69% | 2.74% | 2.16% | 4.17% | 9.31% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $496,200K ÷ ($—K + $1,832,000K)
= 27.09%
Terex Corporation's return on total capital has shown fluctuations over the years, starting at 9.31% in March 2020 and reaching its lowest point at 2.16% in September 2020. However, the company managed to improve its performance, with the return on total capital increasing steadily to reach 27.09% by December 2024. This indicates that Terex Corporation has been able to generate a higher return for its investors relative to the total capital employed in its operations. The upward trend in the return on total capital suggests that the company has been efficiently utilizing its capital to generate profits and create value for its stakeholders.