AdvanSix Inc (ASIX)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	72,943	126,535	149,331	191,152	229,021	214,796	259,699	232,511	187,650	189,351	130,040	85,816	60,661	26,976	38,076	45,024	59,785	110,967	90,633	91,633
Long-term debt	US$ in thousands	170,000	170,000	140,000	127,000	115,000	135,000	146,500	220,000	135,000	135,000	195,000	246,000	275,000	313,000	388,000	337,000	297,000	266,000	255,000	220,000
Total stockholders’ equity	US$ in thousands	739,237	754,485	774,359	758,067	738,180	714,277	719,209	658,391	601,190	566,311	522,829	474,588	444,123	421,034	420,787	407,836	400,878	417,226	420,563	419,244
Return on total capital		8.02%	13.69%	16.33%	21.60%	26.84%	25.29%	30.00%	26.47%	25.49%	27.00%	18.12%	11.91%	8.44%	3.68%	4.71%	6.04%	8.57%	16.24%	13.42%	14.33%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $72,943K ÷ ($170,000K + $739,237K)
= 8.02%

AdvanSix Inc's return on total capital has displayed a downward trend over the past eight quarters. The return on total capital was at its highest in Q1 2023 at 21.46% and has since decreased consistently to 7.65% in Q4 2023. This decline may indicate potential issues with the company's capital management efficiency, utilization of assets, or profitability. A declining return on total capital can be a cause for concern as it suggests that the company's ability to generate profits from its investments has been decreasing over time. Further analysis and investigation into the underlying reasons for this trend would be beneficial for stakeholders and management to address any underlying issues and improve future financial performance.