Peabody Energy Corp (BTU)
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 | 563,000 | 1,184,600 | 1,418,900 | 553,600 | -1,757,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,650,500 | 3,547,000 | 3,231,300 | 1,761,800 | 929,600 |
| Return on total capital | 15.42% | 33.40% | 43.91% | 31.42% | -189.08% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $563,000K ÷ ($—K + $3,650,500K)
= 15.42%
Peabody Energy Corp's return on total capital has exhibited significant fluctuations over the analyzed period. The company experienced a drastic negative return on total capital of -189.08% as of December 31, 2020, indicating inefficiencies in its capital utilization. However, in the subsequent years, Peabody Energy demonstrated a notable improvement in its performance, achieving a return on total capital of 31.42% as of December 31, 2021. This positive trend continued as the return on total capital further increased to 43.91% by December 31, 2022, and maintained a relatively strong level at 33.40% by December 31, 2023. Nonetheless, there was a slight decline in performance by December 31, 2024, where the return on total capital decreased to 15.42%.
Overall, Peabody Energy Corp displayed a mixed performance in terms of return on total capital during the analyzed period, with notable improvements in capital efficiency in some years but also experiencing fluctuations in its profitability metrics. Management should continue to focus on optimizing capital allocation strategies to sustain and enhance shareholder value.
Peer comparison
Dec 31, 2024