Terex Corporation (TEX)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 180,100 | 126,800 | 139,500 | 125,900 |
| Long-term debt | US$ in thousands | — | 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 | 1,168,800 | 1,166,600 | 1,341,700 | 1,467,300 |
| Total stockholders’ equity | US$ in thousands | 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 | 932,300 | 866,300 | 860,100 | 781,800 |
| Return on total capital | 38.53% | 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% | 8.57% | 6.24% | 6.34% | 5.60% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $644,300K ÷ ($—K + $1,672,300K)
= 38.53%
Terex Corp.'s return on total capital has shown a consistent positive trend over the past eight quarters, reflecting improving efficiency in generating returns from its total capital employed. The company achieved a return on total capital of 27.73% in Q4 2023, the highest among the reported quarters, indicating a strong ability to generate profits relative to the total capital invested. This compares favorably to the previous quarter, Q3 2023, where the return on total capital was slightly lower at 29.10%.
Overall, Terex Corp.'s return on total capital has generally been on an upward trajectory, with occasional fluctuations quarter-over-quarter. This upward trend suggests effective capital allocation and operational efficiency, leading to higher returns for the company and its investors. The consistently improving return on total capital is a positive indicator of the company's financial performance and management of its capital resources.