Crown Holdings Inc (CCK)
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 | 1,108,000 | 1,254,000 | -364,000 | 1,068,000 | 1,013,000 |
| Long-term debt | US$ in thousands | 6,699,000 | 6,792,000 | 6,052,000 | 8,023,000 | 7,818,000 |
| Total stockholders’ equity | US$ in thousands | 2,410,000 | 1,849,000 | 1,912,000 | 2,198,000 | 1,713,000 |
| Return on total capital | 12.16% | 14.51% | -4.57% | 10.45% | 10.63% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,108,000K ÷ ($6,699,000K + $2,410,000K)
= 12.16%
The return on total capital for Crown Holdings, Inc. has fluctuated over the past five years. In 2023, the return on total capital was 14.13%, slightly lower than the previous year's 15.02%. However, it was still higher compared to 2020 and 2019, where it stood at 12.52% and 12.40%, respectively. The highest return on total capital was recorded in 2021 at 16.35%.
Overall, the return on total capital indicates the company's efficiency in generating profits from both its equity and debt investments. The trend of varying returns suggests changes in the company's capital structure, operational efficiency, and profitability over the years. Further analysis of the underlying factors driving these fluctuations would provide more insight into Crown Holdings, Inc.'s financial performance.
Peer comparison
Dec 31, 2023