Century Communities Inc (CCS)
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 | 518,960 | 408,930 | 738,000 | 700,322 | 337,040 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,620,860 | 2,386,940 | 2,150,220 | 1,764,510 | 1,280,700 |
| Return on total capital | 19.80% | 17.13% | 34.32% | 39.69% | 26.32% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $518,960K ÷ ($—K + $2,620,860K)
= 19.80%
Century Communities Inc's return on total capital has shown variability over the years. In 2020, the company recorded a respectable return of 26.32%, indicating efficient utilization of its total capital to generate profits. This metric significantly improved in 2021, reaching 39.69%, reflecting even higher effectiveness in generating returns on its total capital.
In 2022, the return on total capital slightly decreased to 34.32%, still maintaining a strong performance level. However, there was a notable decline in 2023 to 17.13%, possibly indicating challenges or changes in the company's capital allocation strategies or operational performance.
By the end of 2024, the return on total capital rebounded to 19.80%, showing signs of recovery but remaining below the levels seen in 2021 and 2022. Overall, Century Communities Inc's return on total capital has displayed fluctuations, suggesting the need for continued monitoring and optimization of the company's capital allocation and operational efficiency.
Peer comparison
Dec 31, 2024