Trimble Inc (TRMB)
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 | 463,900 | 518,000 | 575,600 | 640,000 | 472,600 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,745,300 | 4,500,100 | 4,050,200 | 3,944,700 | 3,596,900 |
| Return on total capital | 8.07% | 11.51% | 14.21% | 16.22% | 13.14% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $463,900K ÷ ($—K + $5,745,300K)
= 8.07%
The return on total capital for Trimble Inc has shown mixed performance over the years based on the provided data.
In 2020, the return on total capital was 13.14%, indicating that the company generated a return of 13.14% on its total invested capital during that year.
This ratio improved significantly in 2021 to 16.22%, implying better efficiency in utilizing the total capital to generate profits.
However, there was a slight decline in 2022, with the return on total capital decreasing to 14.21%. This may suggest a slight decrease in profitability or efficiency in utilizing capital during that period.
The trend continued in 2023, with the return on total capital further declining to 11.51%. This could indicate potential challenges faced by the company in generating returns on its total capital investments.
The performance of Trimble Inc worsened in 2024, as the return on total capital dropped significantly to 8.07%. This sharp decline may raise concerns about the company's ability to generate sufficient returns on the capital employed.
Overall, the fluctuating trend in Trimble Inc's return on total capital highlights the importance of closely monitoring the company's financial performance and efficiency in capital utilization to ensure sustainable profitability and growth.
Peer comparison
Dec 31, 2024