AdvanSix Inc (ASIX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 56,886 | 61,490 | 20,843 | 10,494 | 76,708 | 129,172 | 150,598 | 191,249 | 228,573 | 215,161 | 260,576 | 234,015 | 190,141 | 189,864 | 131,310 | 87,572 | 60,866 | 26,306 | 35,431 | 40,468 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 774,650 | 766,408 | 746,597 | 713,157 | 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 |
| Return on total capital | 7.34% | 8.02% | 2.79% | 1.47% | 10.38% | 17.12% | 19.45% | 25.23% | 30.96% | 30.12% | 36.23% | 35.54% | 31.63% | 33.53% | 25.12% | 18.45% | 13.70% | 6.25% | 8.42% | 9.92% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $56,886K ÷ ($—K + $774,650K)
= 7.34%
AdvanSix Inc's return on total capital has shown fluctuations over the period under review. The ratio increased steadily from March 31, 2020, at 9.92%, reaching a peak of 36.23% by June 30, 2022. This indicates an improvement in the company's ability to generate profit from its invested capital during this period.
However, the return on total capital started to decline after June 30, 2022, dropping to 10.38% by December 31, 2023. This downward trend continued into the first half of 2024, with the ratio at 2.79% as of June 30, 2024. The ratio then increased slightly to 7.34% by December 31, 2024.
Overall, the return on total capital for AdvanSix Inc has experienced both periods of growth and decline, suggesting varying levels of efficiency in generating returns relative to the capital invested. It will be important for stakeholders to closely monitor this metric to assess the company's financial performance and capital utilization efficiency.
Peer comparison
Dec 31, 2024