Ball Corporation (BALL)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,273,000 | 1,161,000 | 1,359,000 | 931,000 | 1,214,000 | 1,406,000 | 1,121,000 | 1,601,000 | 1,291,000 | 1,207,000 | 1,343,000 | 1,148,000 | 1,003,000 | 913,000 | 737,000 | 866,000 | 932,000 | 924,000 | 994,000 | 930,000 |
| Long-term debt | US$ in thousands | 8,070,000 | 8,770,000 | 8,800,000 | 8,610,000 | 7,990,000 | 7,600,000 | 8,400,000 | 8,200,000 | 8,030,000 | 8,900,000 | 8,100,000 | 8,100,000 | 8,300,000 | 7,679,000 | 7,158,000 | 7,476,000 | 6,337,000 | 6,623,000 | 6,916,000 | 6,719,000 |
| Total stockholders’ equity | US$ in thousands | 3,769,000 | 3,938,000 | 3,836,000 | 3,639,000 | 3,461,000 | 3,479,000 | 3,465,000 | 3,898,000 | 3,627,000 | 3,704,000 | 3,639,000 | 3,492,000 | 3,275,000 | 2,886,000 | 2,762,000 | 2,630,000 | 2,949,000 | 3,365,000 | 3,460,000 | 3,546,000 |
| Return on total capital | 10.75% | 9.14% | 10.75% | 7.60% | 10.60% | 12.69% | 9.45% | 13.23% | 11.07% | 9.58% | 11.44% | 9.90% | 8.67% | 8.64% | 7.43% | 8.57% | 10.04% | 9.25% | 9.58% | 9.06% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,273,000K ÷ ($8,070,000K + $3,769,000K)
= 10.75%
To analyze Ball Corp.'s return on total capital, we observe fluctuations in this metric across various quarters. In Q4 2023, the return on total capital was 11.72%, showing a slight increase from the previous quarter's 9.48%. This improvement could be attributed to enhanced operational efficiency or effective capital allocation strategies. Comparing Q4 2023 to the same quarter in the prior year, where the return on total capital was 10.41%, there has been further growth over time.
Although the return on total capital in Q3 and Q2 2023 was slightly lower at 9.48% and 9.24% respectively, the values remained relatively stable. The highest return on total capital in the displayed periods was observed in Q1 2022 at 11.95%.
Overall, Ball Corp.'s return on total capital has shown consistency and a positive trend, indicating efficient utilization of both equity and debt capital to generate profits. This metric is essential for assessing the company's ability to generate value for its capital providers.
Peer comparison
Dec 31, 2023