Core Natural Resources, Inc. (CNR)
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 | 352,839 | 807,197 | 621,077 | 98,749 | 51,944 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,568,250 | 1,343,440 | 1,165,830 | 1,176,340 | 441,805 |
| Return on total capital | 22.50% | 60.08% | 53.27% | 8.39% | 11.76% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $352,839K ÷ ($—K + $1,568,250K)
= 22.50%
Core Natural Resources, Inc.'s return on total capital has shown significant fluctuations over the past five years. In December 2020, the return on total capital stood at 11.76%, indicating the company was generating a reasonable return on its total capital employed. However, this ratio decreased to 8.39% by the end of December 2021, suggesting a decline in the company's efficiency in generating returns on its capital.
The situation changed dramatically in the following years as the return on total capital spiked to 53.27% by December 2022 and further increased to an impressive 60.08% by December 2023. These substantial increases in the return on total capital demonstrate a significant improvement in the company's ability to generate profits relative to its total capital investment.
However, by the end of December 2024, the return on total capital decreased to 22.50%, indicating a slight decline compared to the previous year. Overall, the company's return on total capital has shown volatility, but the significant improvements seen in 2022 and 2023 suggest effective capital utilization and potentially strong profitability during those years.
Peer comparison
Dec 31, 2024