Comstock Resources Inc (CRK)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-157,208	416,007	1,573,040	-11,837	173,202
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,241,020	2,358,410	2,278,310	1,187,780	1,441,770
Return on total capital		-7.02%	17.64%	69.04%	-1.00%	12.01%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-157,208K ÷ ($—K + $2,241,020K)
= -7.02%

The return on total capital for Comstock Resources Inc has shown significant fluctuations over the years based on the provided data. In 2020, the return on total capital was 12.01%, indicating a positive performance where the company generated a return of 12.01% on its total capital.

However, in 2021, the return on total capital dropped to -1.00%, signifying a negative performance where the company experienced a loss on its total capital. This could be a concerning trend, as negative returns may indicate inefficiency or financial challenges within the company.

The following year, the return on total capital surged to 69.04%, exhibiting a substantial improvement and a strong performance where the company generated a high return on its total capital. This sharp increase could be attributed to improved operational efficiency or successful strategic initiatives.

In 2023, the return on total capital decreased to 17.64%, still indicating a positive performance but lower compared to the previous year. It's essential for the company to monitor these fluctuations and ensure sustainable returns on capital to support long-term growth and profitability.

By the end of 2024, the return on total capital further declined to -7.02%, reverting to negative territory and potentially raising concerns about the company's financial health and capital utilization efficiency.

Overall, the analysis of Comstock Resources Inc's return on total capital demonstrates the importance of monitoring financial performance closely and implementing strategies to maintain positive returns, address challenges, and drive sustainable growth.