Clean Harbors Inc (CLH)
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 | 612,439 | 634,747 | 347,887 | 251,336 | 229,456 |
| Long-term debt | US$ in thousands | 2,291,720 | 2,414,830 | 2,517,020 | 1,549,640 | 1,554,120 |
| Total stockholders’ equity | US$ in thousands | 2,247,510 | 1,922,320 | 1,513,890 | 1,341,550 | 1,269,810 |
| Return on total capital | 13.49% | 14.64% | 8.63% | 8.69% | 8.13% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $612,439K ÷ ($2,291,720K + $2,247,510K)
= 13.49%
Clean Harbors, Inc.'s return on total capital has shown fluctuations over the past five years, ranging from 8.10% in 2019 to 14.60% in 2022. The return on total capital was 13.46% at the end of 2023, indicating that the company generated a return of $0.1346 for every dollar of total capital employed in its operations. This performance suggests that Clean Harbors has been relatively effective in utilizing its total capital to generate profits for its investors. However, it is essential to monitor this ratio over time to assess the company's long-term financial health and efficiency in deploying its capital resources.
Peer comparison
Dec 31, 2023