Atlas Energy Solutions Inc. (AESI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 114,326 | 132,564 | 155,611 |
| Long-term debt | US$ in thousands | 466,989 | 439,043 | 447,450 |
| Total stockholders’ equity | US$ in thousands | 1,036,560 | 1,046,180 | 1,061,960 |
| Return on total capital | 7.60% | 8.93% | 10.31% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $114,326K ÷ ($466,989K + $1,036,560K)
= 7.60%
To analyze Atlas Energy Solutions Inc.'s return on total capital based on the provided data, we observe a steady decline in the metric over the three quarters presented. Starting at 10.31% in June 30, 2024, the return on total capital decreased to 8.93% by September 30, 2024, and further declined to 7.60% by December 31, 2024.
This downward trend in return on total capital could indicate possible inefficiencies in capital allocation or utilization within the company. A decreasing return on total capital may suggest that the company is not generating sufficient returns relative to the total capital employed in its operations.
Further analysis and comparison with industry benchmarks or historical performance would be necessary to determine the underlying factors contributing to the decline in return on total capital for Atlas Energy Solutions Inc. It is essential for the company to assess its capital deployment strategies and operational efficiency to improve its return on total capital in the future.
Peer comparison
Dec 31, 2024