Church & Dwight Company Inc (CHD)
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 | 851,300 | 1,078,300 | 612,900 | 1,086,200 | 1,034,800 |
| Long-term debt | US$ in thousands | 2,204,600 | 2,202,200 | 2,599,500 | 1,610,700 | 1,812,500 |
| Total stockholders’ equity | US$ in thousands | 4,360,800 | 3,855,400 | 3,489,900 | 3,233,200 | 3,020,400 |
| Return on total capital | 12.97% | 17.80% | 10.07% | 22.42% | 21.41% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $851,300K ÷ ($2,204,600K + $4,360,800K)
= 12.97%
The return on total capital for Church & Dwight Company Inc has shown fluctuating trends over the past five years. In December 2020, the return on total capital was 21.41%, indicating that the company generated a solid return relative to its total capital employed. This ratio improved to 22.42% by December 2021, suggesting that the company was able to generate even higher returns on its total capital.
However, there was a notable decline in the return on total capital in December 2022, dropping to 10.07%. This significant decrease may indicate potential challenges or inefficiencies in the company's capital allocation or operational performance during that year.
The return on total capital rebounded in December 2023 to 17.80%, showing some improvement from the previous year but still below the levels seen in 2020 and 2021. By December 2024, the return on total capital further declined to 12.97%, indicating a continued decrease in the company's ability to generate returns on its total capital.
Overall, the fluctuating trend in Church & Dwight Company Inc's return on total capital suggests varying efficiencies in capital deployment and operational performance over the analyzed period. Further analysis would be needed to understand the factors driving the changes in this ratio and assess the company's overall financial health and performance.
Peer comparison
Dec 31, 2024