Peabody Energy Corp (BTU)
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 | 1,074,700 | 1,381,600 | 432,200 | -1,728,300 | -21,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,547,000 | 3,231,300 | 1,761,800 | 929,600 | 2,613,800 |
| Return on total capital | 30.30% | 42.76% | 24.53% | -185.92% | -0.81% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,074,700K ÷ ($—K + $3,547,000K)
= 30.30%
Peabody Energy Corp's return on total capital has shown fluctuations over the past five years. The company achieved a positive return on total capital in the most recent three years, with notable improvement from 2021 to 2022. However, in 2020 and 2019, the return on total capital was negative, with particularly significant declines in 2020. This indicates that the company's ability to generate profits relative to its total capital employed varied widely over the period under review. It is important for investors to carefully consider the factors underlying these fluctuations to assess the company's overall financial performance and sustainability.
Peer comparison
Dec 31, 2023