AdvanSix Inc (ASIX)
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 | 73,322 | 229,051 | 187,714 | 60,661 | 59,777 |
| Long-term debt | US$ in thousands | 170,000 | 115,000 | 135,000 | 275,000 | 297,000 |
| Total stockholders’ equity | US$ in thousands | 739,237 | 738,180 | 601,190 | 444,123 | 400,878 |
| Return on total capital | 8.06% | 26.85% | 25.50% | 8.44% | 8.57% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $73,322K ÷ ($170,000K + $739,237K)
= 8.06%
AdvanSix Inc's return on total capital has exhibited some fluctuations over the past five years. The return on total capital was 7.65% at the end of 2023, compared to higher levels of 26.57% and 25.96% in 2022 and 2021, respectively. However, it was notably lower at 8.74% and 8.61% in 2020 and 2019, respectively. These variations indicate a degree of inconsistency in the company's ability to generate returns on its total capital over the years, with the most recent data showing a decrease compared to the previous years. Further analysis and investigation into the factors influencing these fluctuations would be necessary to determine the underlying reasons for the changes in the return on total capital.
Peer comparison
Dec 31, 2023