Celsius Holdings Inc (CELH)
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 | 266,366 | -157,801 | -4,090 | 7,912 | -1,448 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 264,040 | 40,091 | 217,046 | 104,327 | 63,459 |
| Return on total capital | 100.88% | -393.61% | -1.88% | 7.58% | -2.28% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $266,366K ÷ ($—K + $264,040K)
= 100.88%
Celsius Holdings Inc's return on total capital has fluctuated significantly over the past five years. The company experienced a significant increase in 2023, with a return of 100.78%, indicating that for every dollar of total capital invested, the company generated a profit of approximately $1.01. This represents a strong performance in efficiently utilizing its capital resources to generate earnings.
In contrast, the company had negative returns in 2022, 2021, and 2019, suggesting that during those years, the company did not earn sufficient profits relative to the total capital invested. Particularly in 2022, the return on total capital was -18.25%, indicating a substantial loss compared to the capital employed.
However, in 2020, Celsius Holdings Inc managed to achieve a positive return on total capital of 7.56%, showing an improvement from the previous year. Despite this improvement, the return was still relatively low compared to other years.
Overall, the company's return on total capital has been volatile, with significant fluctuations in performance across the years. Analysis of the factors driving these fluctuations would be beneficial in understanding the company's capital utilization efficiency and profitability trends over time.
Peer comparison
Dec 31, 2023