Peabody Energy Corp (BTU)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 537,200 | 746,900 | 772,700 | 816,300 | 1,153,800 | 1,481,600 | 1,723,700 | 1,879,600 | 1,378,100 | 1,347,800 | 899,900 | 470,000 | 523,400 | -135,400 | -133,300 | -1,662,100 | -1,712,300 | -1,854,000 | -1,858,700 | -265,600 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,708,800 | 3,639,300 | 3,657,800 | 3,479,200 | 3,547,000 | 3,458,600 | 3,444,700 | 3,474,700 | 3,231,300 | 2,611,200 | 2,248,200 | 1,852,800 | 1,761,800 | 981,900 | 896,500 | 839,500 | 929,600 | 1,050,700 | 939,300 | 2,476,500 |
| Return on total capital | 14.48% | 20.52% | 21.12% | 23.46% | 32.53% | 42.84% | 50.04% | 54.09% | 42.65% | 51.62% | 40.03% | 25.37% | 29.71% | -13.79% | -14.87% | -197.99% | -184.20% | -176.45% | -197.88% | -10.72% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $537,200K ÷ ($—K + $3,708,800K)
= 14.48%
Peabody Energy Corp's return on total capital has shown significant fluctuations over the past few years. The company experienced negative returns in the range of -10.72% to -197.88% in the first half of 2020, reflecting challenges and inefficiencies in capital utilization.
However, there was a notable improvement in the return on total capital starting from December 31, 2021, when the percentage turned positive at 29.71%. This positive trend continued into 2022 and 2023, with returns ranging from 20.52% to 54.09%. This indicates that the company's capital investments were generating higher returns during this period.
In the later periods, specifically in the second half of 2024, the return on total capital started declining again, with percentages falling to 14.48%. This decrease may suggest potential issues in capital management or changes in market conditions affecting the company's profitability.
Overall, the varying performance of Peabody Energy Corp’s return on total capital highlights the importance of closely monitoring and evaluating the efficiency and effectiveness of the company’s capital allocation strategies over time.
Peer comparison
Dec 31, 2024