Avient Corp (AVNT)
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 | 349,800 | 318,100 | 286,200 | 276,700 | 231,700 | 152,800 | 124,200 | 190,900 | 232,700 | 327,700 | 353,700 | 327,000 | 351,800 | 355,300 | 347,900 | 284,800 | 216,500 | 151,900 | 160,600 | 158,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,329,600 | 2,363,000 | 2,317,500 | 2,321,300 | 2,319,200 | 2,276,900 | 2,334,700 | 2,349,800 | 2,334,500 | 1,720,400 | 1,809,700 | 1,813,200 | 1,774,700 | 1,768,800 | 1,768,200 | 1,707,000 | 1,683,600 | 1,597,000 | 1,551,300 | 1,538,600 |
| Return on total capital | 15.02% | 13.46% | 12.35% | 11.92% | 9.99% | 6.71% | 5.32% | 8.12% | 9.97% | 19.05% | 19.54% | 18.03% | 19.82% | 20.09% | 19.68% | 16.68% | 12.86% | 9.51% | 10.35% | 10.31% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $349,800K ÷ ($—K + $2,329,600K)
= 15.02%
Avient Corp's return on total capital has varied over the observation period, ranging from as low as 5.32% in June 2023 to as high as 20.09% in September 2021. The return on total capital generally exhibited an increasing trend from June 2021 to December 2021, reaching its peak at 20.09%. However, there was a slight decline in the subsequent periods, with the ratio hovering around 19-20% until June 2022.
From September 2022 onwards, the return on total capital started to decline gradually, reaching 9.97% by December 2022. Subsequently, there was fluctuation in the ratio, with occasional increases and decreases until December 2024, where it stood at 15.02%.
Overall, it is important for Avient Corp to closely monitor and manage its return on total capital to ensure optimal utilization of both equity and debt funds in generating profits for its stakeholders. Efforts to stabilize or improve this ratio may involve strategic deployment of capital, efficient resource allocation, and continuous evaluation of the company's operational performance.
Peer comparison
Dec 31, 2024