Crocs Inc (CROX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,020,074 | 1,030,462 | 1,033,245 | 1,027,812 | 1,037,623 | 1,052,690 | 1,043,795 | 970,757 | 854,666 | 791,072 | 731,577 | 679,588 | 685,496 | 588,292 | 455,656 | 317,242 | 213,721 | 157,262 | 126,278 | 116,511 |
| Long-term debt | US$ in thousands | 1,349,340 | 1,421,950 | 1,529,570 | 1,727,150 | 1,641,000 | 1,918,670 | 2,007,480 | 2,250,290 | 2,298,030 | 2,595,770 | 2,743,510 | 2,851,260 | 771,390 | 685,955 | 386,383 | 341,103 | 180,000 | 135,000 | 275,000 | 350,000 |
| Total stockholders’ equity | US$ in thousands | 1,835,730 | 1,725,120 | 1,653,210 | 1,597,060 | 1,453,920 | 1,200,260 | 1,189,690 | 968,500 | 817,931 | 630,802 | 491,965 | 349,170 | 14,082 | 352,831 | 358,764 | 326,231 | 290,633 | 227,987 | 156,884 | 94,029 |
| Return on total capital | 32.03% | 32.74% | 32.46% | 30.92% | 33.53% | 33.75% | 32.65% | 30.16% | 27.43% | 24.52% | 22.61% | 21.23% | 87.27% | 56.63% | 61.15% | 47.54% | 45.41% | 43.32% | 29.24% | 26.24% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,020,074K ÷ ($1,349,340K + $1,835,730K)
= 32.03%
Crocs Inc's return on total capital has exhibited fluctuations over the past few years, ranging from 21.23% as of March 31, 2022, to a peak of 87.27% as of December 31, 2021. The return on total capital provides insights into the company's efficiency in generating profits from its capital investments. Despite the variability in the ratio, the upward trend from 2020 to 2022 indicates an improvement in the company's capital utilization efficiency. However, from March 31, 2023, to December 31, 2024, there has been a relatively stable but slightly declining trend in the return on total capital, hovering around the 30% mark.
Investors, analysts, and stakeholders should closely monitor this metric to understand how effectively Crocs Inc is employing its capital to generate returns. A sustained high return on total capital suggests that the company is utilizing its resources efficiently to generate profits, while a declining trend may indicate potential issues in capital allocation or operational effectiveness that need to be addressed. Additional contextual information and industry comparisons would further enhance the assessment of Crocs Inc's financial performance.
Peer comparison
Dec 31, 2024