Crown Holdings Inc (CCK)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,104,000 | 1,078,000 | 1,043,000 | 1,011,000 |
| Long-term debt | US$ in thousands | 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 | 7,818,000 | 8,042,000 | 8,549,000 | 8,814,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,713,000 | 1,619,000 | 1,294,000 | 1,134,000 |
| Return on total capital | 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% | 11.58% | 11.16% | 10.60% | 10.16% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown some fluctuations in recent quarters. In Q4 2023 and Q3 2023, the return on total capital was 14.13% and 14.00%, respectively, exhibiting relatively stable performance. However, there was a slight decline in Q2 2023 to 12.93%, before a modest recovery to 13.34% in Q1 2023.
Comparing these figures to the same quarters in the previous year, there has been a downward trend indicated by a decrease from 15.02% in Q4 2022 to 13.34% in Q1 2023. This decline is also evident in Q3 2022 and Q2 2022, where the return on total capital was 15.46% and 16.23%, respectively, before dropping to 15.05% in Q1 2022.
Overall, the return on total capital for Crown Holdings, Inc. has been on a downward trajectory since Q2 2022. This trend suggests that the company may be facing challenges in efficiently generating returns from its total capital base. Further analysis of the company's financial health and operational efficiency may be necessary to understand the underlying reasons for this trend and identify potential areas for improvement.
Peer comparison
Dec 31, 2023