The Andersons Inc (ANDE)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 138,556 | 171,121 | 133,893 | -1,911 | 28,475 |
| Long-term debt | US$ in thousands | 562,960 | 492,518 | 600,487 | 886,453 | 1,016,250 |
| Total stockholders’ equity | US$ in thousands | 1,282,900 | 1,198,600 | 1,072,420 | 961,891 | 973,610 |
| Return on total capital | 7.51% | 10.12% | 8.00% | -0.10% | 1.43% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $138,556K ÷ ($562,960K + $1,282,900K)
= 7.51%
Andersons Inc.'s return on total capital has shown a positive trend over the past five years, increasing from 3.35% in 2019 to 13.14% in 2023. This indicates that the company has been able to generate more profit relative to the total capital employed in its operations. The consistent improvement in this ratio suggests that Andersons Inc. is efficiently utilizing its capital and generating favorable returns for its investors. This upward trajectory reflects positively on the company's financial performance and overall profitability.
Peer comparison
Dec 31, 2023
Company name
Symbol
Return on total capital
The Andersons Inc
ANDE
7.51%
Universal Corporation
UVV
10.56%