Comstock Resources Inc (CRK)

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 415,230 1,573,040 -11,837 173,202 286,233
Long-term debt US$ in thousands 2,640,390 2,152,570 2,615,240 2,517,150 2,500,130
Total stockholders’ equity US$ in thousands 2,358,410 2,278,310 1,012,780 1,266,770 1,143,020
Return on total capital 8.31% 35.50% -0.33% 4.58% 7.86%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $415,230K ÷ ($2,640,390K + $2,358,410K)
= 8.31%

Comstock Resources, Inc.'s return on total capital has shown significant fluctuations over the past five years. In 2023, the return on total capital was 4.53%, a notable decrease from the previous year's exceptionally high return of 51.48% in 2022. The company's return on total capital was also relatively high in 2021 at 27.95%, indicating a solid performance. However, in 2020 and 2019, the return on total capital was relatively lower at 4.12% and 6.83%, respectively.

The fluctuation in return on total capital suggests that Comstock Resources, Inc. may have experienced varying levels of profitability and efficiency in allocating its capital over the years. The substantial drop in 2023 compared to the exceptional performance in 2022 raises questions about the company's ability to sustain high returns in the long term. Further analysis of the company's financial performance, capital structure, and effective utilization of resources may provide insights into the factors driving these fluctuations in return on total capital.