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.