Consol Energy Inc (CEIX)
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 | 807,197 | 621,077 | 98,749 | 55,403 | 147,004 |
| Long-term debt | US$ in thousands | 181,885 | 342,110 | 568,052 | 566,858 | 653,802 |
| Total stockholders’ equity | US$ in thousands | 1,343,440 | 1,165,830 | 672,813 | 553,519 | 435,199 |
| Return on total capital | 52.92% | 41.19% | 7.96% | 4.95% | 13.50% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $807,197K ÷ ($181,885K + $1,343,440K)
= 52.92%
Consol Energy Inc's return on total capital has varied significantly over the last five years. The return on total capital was particularly strong in 2022 and 2023, reaching 53.10% and 50.04%, respectively. This indicates that the company was efficiently using its total capital to generate profits during these years.
In contrast, Consol Energy Inc experienced a significant decline in its return on total capital in 2020, with a negative return of -7.98%. This suggests that the company's capital was not being effectively utilized to generate profits during that year.
However, Consol Energy Inc managed to improve its return on total capital in 2021 and 2019, achieving 8.57% and 15.16%, respectively. While these returns are positive, they are lower than the returns seen in 2022 and 2023.
Overall, Consol Energy Inc's return on total capital has shown variability over the past five years, with strong performance in recent years but some challenges in 2020. It is important for the company to continue monitoring and improving its capital utilization to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2023