Arcosa Inc (ACA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 200,900 | 224,000 | 347,200 | 107,000 | 148,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,428,200 | 2,332,000 | 2,184,400 | 1,953,300 | 1,892,200 |
| Return on total capital | 8.27% | 9.61% | 15.89% | 5.48% | 7.86% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $200,900K ÷ ($—K + $2,428,200K)
= 8.27%
Based on the provided data, Arcosa Inc's return on total capital has shown some fluctuations over the years. It was 7.86% as of December 31, 2020, which then decreased to 5.48% by December 31, 2021. However, there was a significant increase to 15.89% by December 31, 2022, indicating improved capital efficiency. The return on total capital then slightly declined to 9.61% by December 31, 2023, followed by a further decrease to 8.27% as of December 31, 2024.
Overall, Arcosa Inc's return on total capital experienced both improvements and declines during the period under review. It is important for the company to continue monitoring and managing its capital allocation and operational efficiency to maintain sustainable returns for its investors and stakeholders.
Peer comparison
Dec 31, 2024