ArcBest Corp (ARCB)

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	244,434	172,619	399,269	280,986	98,278
Long-term debt	US$ in thousands	125,156	161,990	198,371	—	—
Total stockholders’ equity	US$ in thousands	1,314,360	1,242,360	1,151,400	929,067	828,593
Return on total capital		16.98%	12.29%	29.58%	30.24%	11.86%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $244,434K ÷ ($125,156K + $1,314,360K)
= 16.98%

ArcBest Corp's return on total capital has shown fluctuating trends over the period from December 31, 2020, to December 31, 2024. The return on total capital was 11.86% as of December 31, 2020, signifying the company's ability to generate profits relative to the total capital employed.

There was a significant increase in return on total capital to 30.24% by December 31, 2021, indicating a substantial improvement in the company's capital efficiency and profitability. This spike could be attributed to various factors such as improved operational efficiency, strategic investments, or effective cost management.

The trend continued positively through December 31, 2022, with a return on total capital of 29.58%, remaining at a high level compared to the initial period. This sustained performance suggests continued effective utilization of capital to generate returns for shareholders.

By December 31, 2023, the return on total capital decreased to 12.29%, indicating a decline in capital efficiency and profitability compared to the previous year. This drop could be a result of various internal or external factors impacting the company's operations and financial performance.

Finally, as of December 31, 2024, the return on total capital improved to 16.98%, showing a rebound from the previous year. While not reaching the peak levels seen in 2022, the company managed to enhance its capital utilization efficiency.

Overall, the analysis of ArcBest Corp's return on total capital demonstrates a mix of ups and downs in capital efficiency and profitability over the period under review. It is essential for investors and stakeholders to track these trends closely to assess the company's ability to generate returns on the capital invested.