California Resources Corp (CRC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 620,000 | 808,000 | 812,000 | 293,000 | 429,000 |
| Long-term debt | US$ in thousands | 1,132,000 | 540,000 | 592,000 | 589,000 | 4,877,000 |
| Total stockholders’ equity | US$ in thousands | 3,538,000 | 2,219,000 | 1,864,000 | 1,688,000 | -389,000 |
| Return on total capital | 13.28% | 29.29% | 33.06% | 12.87% | 9.56% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $620,000K ÷ ($1,132,000K + $3,538,000K)
= 13.28%
California Resources Corp's return on total capital has shown a positive trend over the years. Starting at 9.56% on December 31, 2019, it increased steadily to 12.87% by December 31, 2021, indicating an improving efficiency in generating returns from the total capital employed. The most significant jump occurred by December 31, 2022, where the return on total capital surged to 33.06%, highlighting a substantial increase in profitability and capital efficiency. By December 31, 2023, the return on total capital remained high at 29.29%, indicating continued strong performance. However, by the end of December 31, 2024, the return on total capital decreased to 13.28%, which is still above the initial value but slightly lower than the peak in 2022. Overall, the company has demonstrated a generally positive trend in utilizing its total capital effectively to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024