Celsius Holdings Inc (CELH)
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 | 155,728 | 266,366 | -157,801 | -4,090 | 7,912 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 399,929 | 264,040 | 40,091 | 217,046 | 104,327 |
| Return on total capital | 38.94% | 100.88% | -393.61% | -1.88% | 7.58% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $155,728K ÷ ($—K + $399,929K)
= 38.94%
Celsius Holdings Inc's return on total capital has exhibited varying trends over the years. At the end of December 31, 2020, the return on total capital stood at 7.58%, indicating a modest return on the capital employed by the company. However, in the subsequent year, by December 31, 2021, the return on total capital declined significantly to -1.88%, signifying a negative return on the invested capital.
The year ending December 31, 2022, saw a substantial decrease in the return on total capital to -393.61%, resulting in a substantial negative return that may raise concerns about the company's operational efficiency and capital allocation strategies. However, by December 31, 2023, there was a remarkable turnaround as the return on total capital surged to 100.88%, indicating a strong recovery and possibly improved operational performance.
By the end of December 31, 2024, the return on total capital for Celsius Holdings Inc was 38.94%, demonstrating a positive return on the capital deployed, though not as high as the peak in 2023. It is essential for stakeholders to closely monitor these fluctuations in the return on total capital to assess the company's ability to generate value from its investments and manage its capital effectively.
Peer comparison
Dec 31, 2024