Trimble Inc (TRMB)
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 | 448,800 | 448,600 | 449,700 | 491,000 | 510,900 | 542,000 | 567,100 | 577,000 | 561,000 | 555,100 | 509,600 | 462,400 | 419,800 | 386,100 | 375,800 | 387,900 | 375,900 | 377,300 | 363,000 | 342,800 |
| Long-term debt | US$ in thousands | 2,536,200 | 2,995,400 | 3,184,700 | 1,786,900 | 1,220,000 | 1,244,600 | 994,100 | — | 1,293,200 | — | — | — | 1,291,400 | — | 1,564,500 | 1,694,700 | 1,624,200 | 1,514,000 | 1,513,600 | 1,647,800 |
| Total stockholders’ equity | US$ in thousands | 4,500,100 | 4,343,000 | 4,331,300 | 4,245,200 | 4,050,200 | 3,844,800 | 3,894,500 | 3,987,900 | 3,944,700 | 3,881,800 | 3,838,600 | 3,673,600 | 3,596,900 | 3,350,000 | 3,211,900 | 3,101,300 | 3,119,000 | 2,786,800 | 2,824,000 | 2,741,700 |
| Return on total capital | 6.38% | 6.11% | 5.98% | 8.14% | 9.69% | 10.65% | 11.60% | 14.47% | 10.71% | 14.30% | 13.28% | 12.59% | 8.59% | 11.53% | 7.87% | 8.09% | 7.93% | 8.77% | 8.37% | 7.81% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $448,800K ÷ ($2,536,200K + $4,500,100K)
= 6.38%
The return on total capital for Trimble Inc has shown some fluctuations over the past few quarters. In the most recent quarter, the return on total capital was 6.38%, slightly lower than the previous quarter at 6.11%. This indicates that the company generated a return of 6.38% on its total invested capital in the business during the period.
Looking further back, the return on total capital has been varying between 5.98% and 14.47% over the last two years. The highest return was observed in the first quarter of 2022 at 14.47%, while the lowest was in the second quarter of 2020 at 7.87%. This suggests that Trimble Inc has experienced periods of both stronger and weaker performance in terms of generating returns relative to its total capital base.
Overall, a return on total capital in the range of 6.38% to 14.47% indicates that Trimble Inc has been able to effectively utilize its total capital to generate returns for its shareholders and investors. However, the fluctuations in the ratio imply that the company's performance in generating returns on its capital has not been consistent and may be influenced by various internal and external factors.
Peer comparison
Dec 31, 2023