CF Industries Holdings Inc (CF)
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 | 2,230,000 | 3,015,000 | 3,521,000 | 4,565,000 | 5,397,000 | 5,315,000 | 4,468,000 | 3,140,000 | 1,729,000 | 756,000 | 893,000 | 723,000 | 623,000 | 642,000 | 790,000 | 985,000 | 1,003,000 | 1,023,000 | 971,000 | 770,000 |
| Long-term debt | US$ in thousands | 2,968,000 | 2,967,000 | 2,967,000 | 2,966,000 | 2,965,000 | 2,965,000 | 2,964,000 | 2,963,000 | 3,465,000 | 3,465,000 | 3,713,000 | 3,713,000 | 3,712,000 | 3,960,000 | 3,959,000 | 3,958,000 | 3,957,000 | 4,204,000 | 4,203,000 | 4,700,000 |
| Total stockholders’ equity | US$ in thousands | 5,717,000 | 5,723,000 | 5,804,000 | 5,453,000 | 5,051,000 | 4,444,000 | 4,589,000 | 4,002,000 | 3,206,000 | 2,938,000 | 3,246,000 | 3,029,000 | 2,922,000 | 2,826,000 | 2,873,000 | 2,728,000 | 2,897,000 | 2,980,000 | 3,066,000 | 2,955,000 |
| Return on total capital | 25.68% | 34.70% | 40.14% | 54.22% | 67.33% | 71.74% | 59.16% | 45.08% | 25.92% | 11.81% | 12.83% | 10.72% | 9.39% | 9.46% | 11.56% | 14.73% | 14.63% | 14.24% | 13.36% | 10.06% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,230,000K ÷ ($2,968,000K + $5,717,000K)
= 25.68%
CF Industries Holdings Inc has experienced fluctuations in its return on total capital over the past eight quarters. The return on total capital ranged from a low of 25.88% in Q4 of 2023 to a high of 75.03% in Q3 of 2022. Overall, the return on total capital has shown a general upward trend from Q1 of 2022 to Q1 of 2023, reaching a peak of 57.58% in Q1 of 2023. This indicates that the company has been effectively utilizing its total capital to generate profits and create value for its shareholders. The significant fluctuations in return on total capital suggest that there may be factors influencing the company's profitability that warrant further investigation.
Peer comparison
Dec 31, 2023