Columbia Sportswear Company (COLM)

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	310,284	352,614	363,321	365,865	393,104	449,268	437,468	463,690	450,504	362,629	314,811	209,516	137,049	151,989	218,361	305,026	394,971	409,106	386,235	379,619
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,938,610	1,895,310	1,874,660	1,947,780	1,935,790	1,814,800	1,731,720	1,818,900	1,989,250	1,880,320	1,861,660	1,868,810	1,832,770	1,722,820	1,652,830	1,696,590	1,849,450	1,747,110	1,655,190	1,720,650
Return on total capital		16.01%	18.60%	19.38%	18.78%	20.31%	24.76%	25.26%	25.49%	22.65%	19.29%	16.91%	11.21%	7.48%	8.82%	13.21%	17.98%	21.36%	23.42%	23.33%	22.06%

December 31, 2023 calculation

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

Columbia Sportswear Co.'s return on total capital has displayed a consistent downward trend over the past eight quarters, declining from 25.49% in Q1 2022 to 17.30% in Q4 2023. This indicates a decreasing efficiency in generating profits from the company's total capital employed. The company experienced its peak return on total capital of 25.49% in Q1 2022 but has since seen a gradual decrease in this key financial metric. Investors and stakeholders may wish to closely monitor the company's capital allocation strategies and operational performance to understand and address the factors contributing to this decline in profitability.