Boise Cascad Llc (BCC)
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 | 624,386 | 1,157,850 | 971,803 | 335,029 | 136,459 |
| Long-term debt | US$ in thousands | 445,280 | 444,392 | 444,628 | 443,792 | 440,544 |
| Total stockholders’ equity | US$ in thousands | 2,195,660 | 2,057,980 | 1,352,620 | 850,799 | 701,330 |
| Return on total capital | 23.64% | 46.27% | 54.07% | 25.88% | 11.95% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $624,386K ÷ ($445,280K + $2,195,660K)
= 23.64%
Boise Cascade Co's return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 23.32%, showing a decrease from the previous year. However, the company's return on total capital was notably high in 2022 at 45.66% and in 2021 at 53.09%, indicating strong profitability and efficiency in utilizing its total invested capital. The return on total capital in 2020 was 25.39%, also above the industry average, while in 2019, the return on total capital was 11.64%.
Overall, Boise Cascade Co has demonstrated varying levels of effectiveness in generating profits from its total capital base over the years, with 2021 being particularly outstanding. It is important for the company to continue monitoring this metric to ensure sustained profitability and efficiency in capital allocation.
Peer comparison
Dec 31, 2023