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