Coca-Cola Consolidated Inc. (COKE)
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 | 556,563 | 599,879 | 288,598 | 268,171 | 73,030 |
| Long-term debt | US$ in thousands | 599,159 | 598,817 | 723,443 | 940,465 | 1,029,920 |
| Total stockholders’ equity | US$ in thousands | 1,435,600 | 1,115,390 | 711,786 | 512,990 | 346,952 |
| Return on total capital | 27.35% | 34.99% | 20.11% | 18.45% | 5.30% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $556,563K ÷ ($599,159K + $1,435,600K)
= 27.35%
The return on total capital for Coca-Cola Consolidated Inc has shown a consistent upward trend over the past five years, indicating the company's improving efficiency in generating profit relative to its total capital employed.
The return on total capital increased from 12.88% in 2019 to 40.86% in 2023, reflecting a substantial improvement in the company's ability to generate returns on its overall investments. This signifies that for every dollar of total capital invested in the company, Coca-Cola Consolidated Inc was able to generate a return of 40.86% in 2023, compared to 12.88% in 2019.
The significant increase in the return on total capital over the years suggests that Coca-Cola Consolidated Inc is effectively utilizing its capital resources to generate profits and create value for its shareholders. This positive trend may indicate solid financial performance and efficient operational management within the company.
Peer comparison
Dec 31, 2023