ArcBest Corp (ARCB)
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 | 172,619 | 399,269 | 280,986 | 98,278 | 63,770 |
| Long-term debt | US$ in thousands | 161,990 | 198,371 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,242,360 | 1,151,400 | 929,067 | 828,593 | 763,043 |
| Return on total capital | 12.29% | 29.58% | 30.24% | 11.86% | 8.36% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $172,619K ÷ ($161,990K + $1,242,360K)
= 12.29%
ArcBest Corp's return on total capital has shown fluctuations over the past five years. The ratio has ranged from 5.87% in 2019 to 28.20% in 2022, with the latest figure standing at 11.73% in 2023.
The significant increase in return on total capital from 2019 to 2022 indicates an improvement in the company's efficiency in generating profits relative to its total capital employed. However, the noticeable drop in 2023 suggests that the company may not have sustained the same level of profitability as in the previous year.
Overall, ArcBest Corp's return on total capital has been somewhat inconsistent, and further analysis is needed to determine the underlying reasons for these fluctuations and to assess the company's ability to generate returns on its invested capital in the long term.
Peer comparison
Dec 31, 2023