California Resources Corp (CRC)

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	808,000	657,000	1,263,000	1,394,000	812,000	1,012,000	543,000	175,000	291,000	-147,000	-282,000	-307,000	-1,883,000	-1,675,000	-1,514,000	-1,277,000	429,000	792,000	829,000	718,000
Long-term debt	US$ in thousands	540,000	589,000	593,000	592,000	592,000	591,000	591,000	590,000	589,000	589,000	589,000	588,000	597,000	0	0	1,000,000	4,877,000	3,900,000	4,600,000	4,800,000
Total stockholders’ equity	US$ in thousands	2,219,000	2,050,000	2,110,000	2,092,000	1,864,000	1,855,000	1,517,000	1,433,000	1,688,000	1,052,000	893,000	1,046,000	1,138,000	-2,341,000	-2,452,000	-2,183,000	-389,000	-308,000	-408,000	-426,000
Return on total capital		29.29%	24.90%	46.73%	51.94%	33.06%	41.37%	25.76%	8.65%	12.78%	-8.96%	-19.03%	-18.79%	-108.53%	—	—	—	9.56%	22.05%	19.78%	16.42%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $808,000K ÷ ($540,000K + $2,219,000K)
= 29.29%

California Resources Corporation's return on total capital has shown fluctuations over the past five quarters. In Q1 2023, the return on total capital was notably high at 51.56%, indicating efficient utilization of the company's total capital to generate profits. This was followed by a slightly lower but still strong performance in Q2 2023, with a return on total capital of 46.39%.

However, in Q3 2023, the return on total capital decreased to 24.52%, signaling a dip in the company's ability to generate returns relative to its total capital. Nonetheless, the company managed to improve its performance in Q4 2023, with a return on total capital of 27.91%, although this value remains lower than the peak seen in Q1 2023.

Overall, California Resources Corporation has displayed varying levels of efficiency in utilizing its total capital to generate returns over the five quarters, with Q1 2023 standing out as a period of particularly strong performance. Monitoring future trends in return on total capital will be crucial to assessing the company's financial health and operational efficiency.