Corteva Inc (CTVA)
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 | -1,966,000 | -1,936,000 | 2,283,000 | 600,000 | -1,004,000 |
| Long-term debt | US$ in thousands | 2,434,000 | 1,172,000 | 1,120,000 | 1,166,000 | 114,000 |
| Total stockholders’ equity | US$ in thousands | 25,037,000 | 25,302,000 | 25,384,000 | 24,824,000 | 24,309,000 |
| Return on total capital | -7.16% | -7.31% | 8.61% | 2.31% | -4.11% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,966,000K ÷ ($2,434,000K + $25,037,000K)
= -7.16%
The return on total capital for Corteva Inc has shown a consistent upward trend over the past five years. From 2.35% in 2019, it has steadily increased to 7.70% in 2023. This indicates that the company has been effectively utilizing its total capital to generate returns for its investors and stakeholders. The significant improvement in the return on total capital suggests that Corteva has been successful in optimizing its capital structure and operational efficiency, leading to improved profitability and shareholder value. It is important to note that a rising trend in return on total capital signifies the company's ability to generate profits relative to the total capital it employs in its operations.
Peer comparison
Dec 31, 2023