Corteva Inc (CTVA)
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 | 1,508,000 | 941,000 | 1,505,000 | 2,376,000 | 1,211,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 23,789,000 | 25,037,000 | 25,302,000 | 25,384,000 | 24,824,000 |
| Return on total capital | 6.34% | 3.76% | 5.95% | 9.36% | 4.88% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,508,000K ÷ ($—K + $23,789,000K)
= 6.34%
Corteva Inc's return on total capital has exhibited fluctuations over the past five years. The return on total capital was 4.88% as of December 31, 2020, increased to 9.36% by the end of 2021, but then decreased to 5.95% in 2022. Subsequently, there was a further decline to 3.76% by the end of 2023, before a modest recovery to 6.34% as of December 31, 2024.
These fluctuations indicate changes in how effectively Corteva is utilizing its total capital to generate returns for its investors. It would be crucial for the company to investigate the reasons behind these variations and take appropriate steps to improve its return on total capital in the future.
Peer comparison
Dec 31, 2024