Ball Corporation (BALL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 828,000 | 1,273,000 | 1,209,000 | 1,276,000 | 954,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,930,000 | 3,769,000 | 3,527,000 | 3,685,000 | 3,337,000 |
| Return on total capital | 13.96% | 33.78% | 34.28% | 34.63% | 28.59% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $828,000K ÷ ($—K + $5,930,000K)
= 13.96%
To analyze Ball Corporation's return on total capital over the years, we can see a fluctuation in the ratio.
As of December 31, 2020, the return on total capital was 28.59%. This indicates that the company generated a return of 28.59% on its total capital employed in that period.
By December 31, 2021, the return on total capital increased to 34.63%, showcasing an improvement in the company's efficiency in generating returns on its invested capital.
The ratio remained relatively stable in the following years, with percentages of 34.28% on December 31, 2022, and 33.78% on December 31, 2023, indicating consistent performance in utilizing its total capital effectively.
However, by December 31, 2024, the return on total capital decreased significantly to 13.96%, suggesting a notable decline in the company's ability to generate returns on its total capital.
In conclusion, Ball Corporation experienced fluctuations in its return on total capital over the analyzed period, with varying levels of performance efficiency. It is essential for the company to monitor and address factors impacting this ratio to sustain optimal capital utilization and profitability.
Peer comparison
Dec 31, 2024