Boise Cascad Llc (BCC)
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 | 525,826 | 670,545 | 1,158,860 | 971,727 | 344,279 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,151,270 | 2,195,660 | 2,057,980 | 1,352,620 | 850,799 |
| Return on total capital | 24.44% | 30.54% | 56.31% | 71.84% | 40.47% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $525,826K ÷ ($—K + $2,151,270K)
= 24.44%
Boise Cascade Llc's return on total capital has shown fluctuating trends over the past five years. The return on total capital was strong at 40.47% as of December 31, 2020, reflecting efficient capital utilization. Subsequently, the return increased significantly to 71.84% as of December 31, 2021, indicating a substantial improvement in capital efficiency.
However, there was a decrease in the return on total capital to 56.31% as of December 31, 2022, possibly due to changes in the company's capital structure or operational performance. The return further declined to 30.54% by December 31, 2023, suggesting potential challenges in generating returns on the total capital employed.
As of December 31, 2024, Boise Cascade Llc's return on total capital decreased to 24.44%, indicating a continued decline in capital efficiency. It is essential for the company to evaluate its capital utilization strategies and operational performance to improve returns and ensure sustainable growth in the future.
Peer comparison
Dec 31, 2024