Century Communities Inc (CCS)

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	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	1,921,022	1,810,217	1,784,586	1,280,742
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	1,061,700	951,179	897,229	875,406
Return on total capital		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%	180.94%	190.31%	198.90%	146.30%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,792,751K ÷ ($—K + $2,386,940K)
= 117.00%

Century Communities Inc's return on total capital has shown a decreasing trend over the past few quarters. In Q1 2022, the return on total capital was at its highest at 23.66%, but it has gradually decreased to 9.64% in Q4 2023. This downward trend indicates that the company may be becoming less efficient in generating profits from its total capital employed. It is important for the company to closely monitor and address the factors contributing to this decline to ensure sustainable financial performance and optimal utilization of its capital resources.