Avient Corp (AVNT)

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	196,800	243,300	279,700	111,600	156,800
Long-term debt	US$ in thousands	2,070,500	2,176,700	1,850,300	1,854,000	1,210,900
Total stockholders’ equity	US$ in thousands	2,319,200	2,334,500	1,774,700	1,697,100	1,051,900
Return on total capital		4.48%	5.39%	7.72%	3.14%	6.93%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $196,800K ÷ ($2,070,500K + $2,319,200K)
= 4.48%

The return on total capital for Avient Corp has been fluctuating over the past five years. In 2023, the return on total capital was 4.47%, a decrease from 5.39% in 2022. This downward trend is notable as in 2021, the return on total capital was higher at 10.49%. Compared to 2020 and 2019, where the return on total capital was 5.30% and 6.87% respectively, the company's performance has been more inconsistent in recent years. It is essential for Avient Corp to analyze the factors contributing to these fluctuations and take necessary steps to improve its return on total capital in the future.