Columbia Sportswear Company (COLM)

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	310,284	393,104	450,504	137,049	394,971
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,938,610	1,935,790	1,989,250	1,832,770	1,849,450
Return on total capital		16.01%	20.31%	22.65%	7.48%	21.36%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $310,284K ÷ ($—K + $1,938,610K)
= 16.01%

Columbia Sportswear Co.'s return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 17.30%, a decrease from the previous years of 22.15% in 2022 and 22.65% in 2021. This decrease may indicate a potential decline in the company's ability to generate profits from its total capital investment.

Comparing the returns to 2020 and 2019, Columbia Sportswear Co. experienced a significant improvement in 2022 and 2019, with returns of 22.15% and 21.36% respectively, indicating efficient utilization of capital and strong profitability. However, in 2020, the return on total capital was only 7.48%, suggesting a period of lower profitability and potentially less effective capital allocation.

Overall, while Columbia Sportswear Co. has shown fluctuations in its return on total capital over the years, it is important for investors and stakeholders to closely monitor these trends and investigate the underlying factors influencing the company's profitability and capital efficiency.