CSX Corporation (CSX)
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 | 5,561,000 | 6,023,000 | 5,594,000 | 4,362,000 | 4,965,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,133,000 | 12,625,000 | 13,500,000 | 13,110,000 | 11,863,000 |
| Return on total capital | 45.83% | 47.71% | 41.44% | 33.27% | 41.85% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,561,000K ÷ ($—K + $12,133,000K)
= 45.83%
CSX Corp.'s return on total capital has exhibited fluctuations over the past five years. The company's return on total capital was 18.03% in 2023, slightly lower than the previous year's 18.87%. Despite this slight decrease, CSX Corp. maintained a strong performance compared to 2021 when the return on total capital was 17.22%. In 2020, the return on total capital was 14.63%, indicating an improvement in the company's capital efficiency over the year. The highest return on total capital was recorded in 2019 at 17.68%.
Overall, CSX Corp.'s return on total capital has been relatively stable, reflecting the company's ability to generate earnings from its total capital base. This metric is important for investors as it provides insights into how efficiently the company is utilizing its total capital to generate profits. It is essential for CSX Corp. to continue monitoring and managing its return on total capital to ensure sustainable financial performance and value creation for its stakeholders.
Peer comparison
Dec 31, 2023