Clearwater Paper Corporation (CLW)
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 | 176,000 | 141,700 | 134,200 | 116,200 | 107,200 | 131,900 | 94,400 | 5,700 | -600 | 13,900 | 46,900 | 150,800 | 155,000 | 133,200 | 83,300 | 54,200 | 41,900 | -149,629 | -95,829 | -93,048 |
| Long-term debt | US$ in thousands | 462,300 | 564,800 | 564,800 | 564,900 | 564,900 | 564,900 | 589,900 | 617,700 | 637,600 | 676,500 | 716,200 | 716,300 | 716,400 | 785,500 | 827,900 | 883,900 | 884,500 | 866,702 | 671,676 | 671,484 |
| Total stockholders’ equity | US$ in thousands | 668,800 | 648,500 | 614,500 | 592,000 | 572,100 | 569,200 | 544,700 | 530,000 | 511,700 | 491,600 | 488,100 | 536,100 | 521,100 | 496,200 | 470,800 | 444,800 | 432,000 | 425,100 | 434,400 | 432,200 |
| Return on total capital | 15.56% | 11.68% | 11.38% | 10.04% | 9.43% | 11.63% | 8.32% | 0.50% | -0.05% | 1.19% | 3.89% | 12.04% | 12.53% | 10.39% | 6.41% | 4.08% | 3.18% | -11.58% | -8.66% | -8.43% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $176,000K ÷ ($462,300K + $668,800K)
= 15.56%
Clearwater Paper Corp's return on total capital has shown fluctuations over the past eight quarters. In Q4 2023, the return on total capital improved to 16.01%, reaching its highest point during this period. This indicates that the company generated $16.01 in profit for every $100 of total capital invested.
Throughout Q3 and Q2 of 2023, the return on total capital remained relatively stable, ranging between 11.80% and 11.84%. In Q1 2023, the return saw a slight decrease to 11.07%, but it remained above 10%, reflecting consistent profitability relative to the capital employed.
Comparing to the results from the same quarters in 2022, there has been an upward trend in the return on total capital. In Q4 2022, the return was 10.73%, showing a gradual increase in subsequent quarters, with Q4 2023 reaching a peak of 16.01%.
Overall, Clearwater Paper Corp has shown an improvement in utilizing its total capital efficiently to generate returns for its stakeholders. The increasing trend in return on total capital indicates positive financial performance and effective capital management strategies implemented by the company.