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.
Peer comparison
Dec 31, 2023