Century Communities Inc (CCS)

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 3,370,172 3,311,638 3,109,049 2,956,636 2,792,751 2,795,332 3,052,662 3,366,537 3,623,059 3,674,719 3,529,526 3,425,218 3,436,468 3,240,626 3,085,651 2,843,345 2,472,886 2,289,425 2,111,370 1,979,674
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total stockholders’ equity US$ in thousands 2,620,860 2,547,500 2,465,660 2,419,280 2,386,940 2,292,660 2,221,920 2,171,640 2,150,220 2,072,000 1,951,160 1,829,860 1,764,510 1,601,020 1,488,660 1,373,170 1,280,700 1,184,960 1,129,490 1,084,530
Return on total capital 128.59% 130.00% 126.09% 122.21% 117.00% 121.93% 137.39% 155.02% 168.50% 177.35% 180.89% 187.18% 194.75% 202.41% 207.28% 207.06% 193.09% 193.21% 186.93% 182.54%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,370,172K ÷ ($—K + $2,620,860K)
= 128.59%

Century Communities Inc's return on total capital has shown a fluctuating trend over the past few years. The ratio increased steadily from March 2020 to June 2021, reaching a peak of over 200%. This indicates that the company was efficient in generating profits relative to the total capital employed during this period.

However, from September 2021 onwards, the return on total capital started to decline gradually, with the ratio dropping to around 120% by December 2023. This suggests a decrease in the company's profitability compared to the capital invested.

Although there was a slight increase in the return on total capital in the subsequent quarters, the ratio remained below the peak levels observed in the earlier periods. Overall, Century Communities Inc's return on total capital indicates a mixed performance, with periods of strong profitability followed by a slowdown in returns. It may be essential for the company to focus on optimizing its capital utilization to improve its overall financial performance in the future.