Century Communities Inc (CCS)
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 | 408,930 | 738,000 | 700,322 | 337,040 | 207,535 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,386,940 | 2,150,220 | 1,764,510 | 1,280,700 | 1,061,700 |
| Return on total capital | 17.13% | 34.32% | 39.69% | 26.32% | 19.55% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $408,930K ÷ ($—K + $2,386,940K)
= 17.13%
Century Communities Inc's return on total capital has shown fluctuation over the past five years. In 2023, the return on total capital was 9.64%, which decreased significantly from the previous year's 20.93%. However, the return in 2023 was still higher compared to 2020 and 2019, which were 11.28% and 6.97%, respectively.
The highest return on total capital was observed in 2021 at 21.28%, indicating strong performance that year. The decreasing trend in the return on total capital from 2021 to 2023 may suggest a decline in the company's efficiency in generating profits relative to the total capital employed.
Overall, while the return on total capital has experienced fluctuations, Century Communities Inc should focus on maintaining or improving this ratio to ensure efficient utilization of its capital and maximize returns for its stakeholders.
Peer comparison
Dec 31, 2023