Chemours Co (CC)

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	391,000	-110,000	913,000	888,000	447,000
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	604,000	737,000	1,107,000	1,081,000	813,000
Return on total capital		64.74%	-14.93%	82.48%	82.15%	54.98%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $391,000K ÷ ($—K + $604,000K)
= 64.74%

The return on total capital for Chemours Co has shown notable fluctuations over the five-year period from 2020 to 2024.

- In December 2020, the return on total capital stood at 54.98%, indicating that the company was generating significant returns relative to the total capital employed.
- By the end of December 2021, the return on total capital had increased substantially to 82.15%, reflecting an improved efficiency in utilizing the capital to generate profits.
- The trend continued into December 2022, with the return on total capital increasing slightly to 82.48%, suggesting sustained profitability and effective capital allocation strategies.
- However, in December 2023, there was a significant downturn as the return on total capital plummeted to -14.93%. This negative figure indicates that the company may have experienced losses that exceeded the total capital employed during that period.
- By December 2024, the return on total capital recovered to 64.74%, although it did not reach the levels seen in 2022. This recovery indicates that the company may have implemented corrective measures to improve its profitability relative to the capital deployed.

Overall, the fluctuations in Chemours Co's return on total capital highlight the importance of closely monitoring and analyzing financial performance metrics to assess the company's efficiency in generating returns on its total capital investment.