Cactus Inc (WHD)
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 | 311,831 | 315,929 | 326,602 | 310,573 | 284,407 | 260,578 | 224,271 | 201,846 | 182,033 | 151,124 | 120,594 | 93,667 | 75,427 | 58,138 | 49,928 | 42,346 | 71,903 | 99,565 | 134,132 | 175,850 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,264,180 | 1,003,020 | 954,676 | 893,366 | 865,522 | 1,010,070 | 952,774 | 925,836 | 710,445 | 544,239 | 517,239 | 492,323 | 595,033 | 579,700 | 441,970 | 559,050 | 550,770 | 546,560 | 547,907 | 542,426 |
| Return on total capital | 24.67% | 31.50% | 34.21% | 34.76% | 32.86% | 25.80% | 23.54% | 21.80% | 25.62% | 27.77% | 23.31% | 19.03% | 12.68% | 10.03% | 11.30% | 7.57% | 13.05% | 18.22% | 24.48% | 32.42% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $311,831K ÷ ($—K + $1,264,180K)
= 24.67%
Cactus Inc's return on total capital has shown some fluctuations over the past few years. The ratio was at a robust 32.42% as of March 31, 2020, indicating efficient utilization of both debt and equity to generate profits. However, this ratio decreased to 24.48% by June 30, 2020, and then continued to decline to 13.05% by December 31, 2020.
The trend reversed in the following quarters, with the return on total capital increasing to 19.03% as of March 31, 2022, and peaking at 34.76% by March 31, 2024. This improvement suggests that the company might have implemented better capital management strategies or improved operational efficiencies during these periods.
Despite the positive trend in the intervening quarters, the return on total capital decreased to 24.67% as of December 31, 2024, indicating a slight dip in the company's profitability or capital efficiency at the end of the period.
Overall, Cactus Inc has demonstrated the ability to generate strong returns on its total capital over the years, although some fluctuations have been observed, warranting further analysis to understand the factors driving these changes in performance.
Peer comparison
Dec 31, 2024