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