AdvanSix Inc (ASIX)
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 | 56,886 | 76,708 | 228,572 | 190,139 | 62,825 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 774,650 | 739,237 | 738,180 | 601,190 | 444,123 |
| Return on total capital | 7.34% | 10.38% | 30.96% | 31.63% | 14.15% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $56,886K ÷ ($—K + $774,650K)
= 7.34%
To analyze AdvanSix Inc's return on total capital over the years, we observe a fluctuating trend. The return on total capital increased significantly from 14.15% in 2020 to 31.63% in 2021, reflecting a strong performance and efficient capital utilization. Subsequently, in 2022, the return remained high at 30.96%, indicating continued robust capital efficiency.
However, there was a notable decline in 2023, with the return on total capital decreasing to 10.38%. This decline suggests a potential decrease in profitability relative to the capital employed during that period. Furthermore, in 2024, the return on total capital decreased further to 7.34%, indicating a continued decrease in the company's capital efficiency and profitability.
In summary, AdvanSix Inc's return on total capital showed a positive performance in 2021 and 2022 but experienced a decline in 2023 and 2024. It would be important for stakeholders to further investigate the underlying reasons for these fluctuations to assess the company's capital allocation strategies and overall financial health.
Peer comparison
Dec 31, 2024