Ball Corporation (BALL)
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 | 1,273,000 | 1,214,000 | 1,291,000 | 1,003,000 | 932,000 |
| Long-term debt | US$ in thousands | 8,070,000 | 7,990,000 | 8,030,000 | 8,300,000 | 6,337,000 |
| Total stockholders’ equity | US$ in thousands | 3,769,000 | 3,461,000 | 3,627,000 | 3,275,000 | 2,949,000 |
| Return on total capital | 10.75% | 10.60% | 11.07% | 8.67% | 10.04% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,273,000K ÷ ($8,070,000K + $3,769,000K)
= 10.75%
The return on total capital for Ball Corp. has shown a fluctuating trend over the past five years. In 2023, the return on total capital was 11.72%, an increase from the previous year's 10.41%. This indicates an improvement in the company's ability to generate profits from the total capital employed.
Compared to the peak in 2021 when the return on total capital was 12.84%, the company experienced a slight dip in 2022 but managed to recover in 2023. Overall, Ball Corp. has maintained a relatively stable return on total capital above 10% in recent years, indicating efficient utilization of both debt and equity capital to generate returns for its shareholders.
Peer comparison
Dec 31, 2023