Columbia Sportswear Company (COLM)

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	—	310,284	429,504	450,504	137,049
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,780,040	1,938,610	1,935,790	1,989,250	1,832,770
Return on total capital		0.00%	16.01%	22.19%	22.65%	7.48%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,780,040K)
= 0.00%

Columbia Sportswear Company's return on total capital has shown significant fluctuations over the years. In 2020, the company achieved a return of 7.48%, indicating a moderate performance. This figure improved substantially in 2021, jumping to 22.65%, signaling a strong growth in efficiency and profitability. The trend continued in 2022, with a return of 22.19%, maintaining the company's robust performance.

However, there was a decrease in 2023, with a return on total capital of 16.01%. This decline may suggest a slight decrease in the company's efficiency in generating profit relative to its total capital. The data for 2024 shows a return of 0.00%, indicating that the company did not generate any return on its total capital in that year.

Overall, Columbia Sportswear Company's return on total capital has demonstrated varying levels of performance, with peaks in 2021 and 2022 followed by a notable decline in 2023 and a complete absence of return in 2024. It is important for investors and stakeholders to monitor these fluctuations closely to assess the company's financial health and sustainability.