Woodward Inc (WWD)

Return on total capital

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	501,930	496,698	480,999	401,931	323,666	281,168	222,075	231,282	234,443	236,925	245,200	269,643	280,081	287,748	274,406	303,625	317,692	326,725	376,084	361,777
Long-term debt	US$ in thousands	569,751	562,618	649,039	653,029	645,709	651,443	652,119	649,093	709,760	716,744	728,247	729,826	734,122	739,062	736,095	745,464	736,849	729,165	869,223	729,176
Total stockholders’ equity	US$ in thousands	2,176,420	2,159,210	2,329,410	2,190,060	2,070,990	2,085,790	2,012,050	1,939,440	1,901,120	1,909,610	2,051,880	2,223,430	2,214,780	2,201,690	2,133,300	2,063,460	1,992,680	1,909,770	1,907,690	1,798,600
Return on total capital		18.28%	18.25%	16.15%	14.14%	11.91%	10.27%	8.34%	8.93%	8.98%	9.02%	8.82%	9.13%	9.50%	9.78%	9.56%	10.81%	11.64%	12.38%	13.54%	14.31%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (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 generally positive trend over the past few years, increasing from 8.93% in December 2022 to 18.28% in September 2024. This improvement indicates that the company has been able to generate a higher return on the capital invested, reflecting better management of its assets and liabilities.

The consistent growth in return on total capital signals that Woodward Inc has been efficiently utilizing its resources to generate profits. Higher returns on total capital indicate that the company is implementing effective strategies to increase profitability and create value for its shareholders.

Overall, the increasing trend in return on total capital for Woodward Inc showcases the company's ability to generate strong returns relative to the total capital employed, which is a positive indication of its financial performance and operational effectiveness.