Clearwater Paper Corporation (CLW)
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 | 176,000 | 107,200 | -600 | 142,600 | 41,900 |
| Long-term debt | US$ in thousands | 462,300 | 564,900 | 637,600 | 716,400 | 884,500 |
| Total stockholders’ equity | US$ in thousands | 668,800 | 572,100 | 511,700 | 521,100 | 432,000 |
| Return on total capital | 15.56% | 9.43% | -0.05% | 11.52% | 3.18% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $176,000K ÷ ($462,300K + $668,800K)
= 15.56%
Clearwater Paper Corp's return on total capital has shown fluctuating trends over the past five years. In 2019, the return on total capital was at a relatively low 3.69%, indicating that the company may not have been effectively utilizing its capital to generate profits. However, in 2020, there was a significant improvement as the return on total capital increased to 13.66%, pointing towards a more efficient capital utilization.
The year 2021 saw a slight decrease in the return on total capital to 5.96%, suggesting a potential slowdown in capital efficiency. In 2022, there was another increase in the return on total capital to 10.73%, indicating a better performance compared to the previous year.
The most recent data for 2023 shows a further improvement in Clearwater Paper Corp's return on total capital, reaching 16.01%. This signifies a strong performance in utilizing its total capital to generate returns for shareholders.
Overall, Clearwater Paper Corp's return on total capital has demonstrated varying performance over the years, with notable improvements in recent years, indicating an enhanced efficiency in utilizing its capital resources to generate profits.