Woodward Inc (WWD)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 501,930 | 323,666 | 234,443 | 280,081 | 317,692 |
| Long-term debt | US$ in thousands | 569,751 | 645,709 | 709,760 | 734,122 | 736,849 |
| Total stockholders’ equity | US$ in thousands | 2,176,420 | 2,070,990 | 1,901,120 | 2,214,780 | 1,992,680 |
| Return on total capital | 18.28% | 11.91% | 8.98% | 9.50% | 11.64% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $501,930K ÷ ($569,751K + $2,176,420K)
= 18.28%
Woodward Inc's return on total capital has shown a positive trend over the past five years. The company achieved a return on total capital of 18.28% in Sep 30, 2024, a notable improvement from 11.91% in Sep 30, 2023. This indicates that the company has been effectively utilizing its total capital to generate profits for its investors and shareholders. The consistent increase in return on total capital demonstrates the company's efficiency in deploying its resources and managing its capital structure, resulting in higher profitability. Overall, Woodward Inc's improving return on total capital reflects positively on the company's financial performance and management effectiveness.