Crown Holdings Inc (CCK)
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 | 1,394,000 | 1,247,000 | 1,135,000 | 1,082,000 | 1,108,000 | 1,108,000 | 1,034,000 | 1,152,000 | 1,254,000 | -243,000 | -259,000 | -361,000 | -364,000 | 1,206,000 | 1,317,000 | 1,213,000 | 1,074,000 | 998,000 | 977,000 | 1,061,000 |
| Long-term debt | US$ in thousands | 6,058,000 | 6,672,000 | 5,949,000 | 6,623,000 | 6,699,000 | 6,240,000 | 6,986,000 | 7,046,000 | 6,792,000 | 6,709,000 | 5,466,000 | 5,654,000 | 6,052,000 | 6,034,000 | 7,879,000 | 7,875,000 | 8,023,000 | 8,039,000 | 7,999,000 | 8,631,000 |
| Total stockholders’ equity | US$ in thousands | 2,756,000 | 2,532,000 | 2,507,000 | 2,470,000 | 2,410,000 | 2,341,000 | 2,235,000 | 2,030,000 | 1,849,000 | 1,666,000 | 1,739,000 | 1,820,000 | 1,912,000 | 2,444,000 | 2,262,000 | 2,377,000 | 2,198,000 | 1,909,000 | 1,815,000 | 1,664,000 |
| Return on total capital | 15.82% | 13.55% | 13.42% | 11.90% | 12.16% | 12.91% | 11.21% | 12.69% | 14.51% | -2.90% | -3.59% | -4.83% | -4.57% | 14.23% | 12.99% | 11.83% | 10.51% | 10.03% | 9.96% | 10.31% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,394,000K ÷ ($6,058,000K + $2,756,000K)
= 15.82%
Crown Holdings Inc's return on total capital has shown fluctuation over the past few years. Starting from March 2020 at 10.31%, the ratio dipped to 9.96% in June 2020 before gradually increasing to 14.23% in September 2021, marking a significant improvement. However, there was a sharp decline in the ratio to -4.57% by December 2021 and further decreases in the subsequent quarters until September 2022, reflecting challenges in capital management during this period.
Subsequently, there was a notable recovery as the return on total capital rebounded to 14.51% by December 2022, indicating a positive turnaround in the company's capital efficiency. The ratio continued to improve, reaching 15.82% by December 2024, demonstrating a stronger performance and enhanced capital utilization efficiency by the company during this period.
Overall, Crown Holdings Inc's return on total capital fluctuated, with both positive and negative trends observed. However, the company managed to recover from the downturns and showed improvements in capital returns in the later periods, reflecting a potential focus on capital allocation and operational efficiency.
Peer comparison
Dec 31, 2024