Cactus Inc (WHD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 264,366 | 174,748 | 75,427 | 70,039 | 183,150 |
| Long-term debt | US$ in thousands | — | 0 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 865,522 | 571,917 | 468,644 | 352,970 | 327,466 |
| Return on total capital | 30.54% | 30.55% | 16.09% | 19.84% | 55.93% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $264,366K ÷ ($—K + $865,522K)
= 30.54%
Cactus Inc's return on total capital has been relatively stable over the past five years, fluctuating between 16.09% and 55.93%. The company's return on total capital was 30.54% in 2023, showing a slight decrease compared to the previous year's 30.55%. This indicates that the company has been efficient in generating returns from its total capital employed in the business. However, the significant fluctuations over the years may suggest varying levels of profitability and efficiency in capital utilization. Further investigation into the company's operational strategies and financial performance is recommended to understand the factors driving these fluctuations in return on total capital.
Peer comparison
Dec 31, 2023