Woodward Inc (WWD)

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	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	364,613	369,894	331,255
Long-term debt	US$ in thousands	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	864,899	1,011,150	1,000,470
Total stockholders’ equity	US$ in thousands	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	1,726,740	1,704,310	1,702,660
Return on total capital		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%	14.07%	13.62%	12.25%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $401,931K ÷ ($653,029K + $2,190,060K)
= 14.14%

Woodward Inc's return on total capital has shown a generally positive trend over the past 8 quarters, increasing from 8.26% in Q2 2022 to 13.17% in Q1 2024. This indicates that the company has been able to generate higher returns relative to the total capital employed in its operations. The consistent improvement in this ratio reflects the company's efficiency in utilizing its capital resources to generate profits. It suggests that Woodward Inc has been successful in managing its assets and liabilities effectively to create value for its shareholders. Overall, the increasing trend in return on total capital is a positive indicator of the company's financial performance and operational effectiveness.