Corteva Inc (CTVA)
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 | 1,646,000 | 1,237,000 | 1,418,000 | 1,378,000 | 1,608,000 | 1,702,000 | 1,710,000 | 1,856,000 | 1,677,000 | 2,129,000 | 2,497,000 | 2,461,000 | 2,635,000 | 2,290,000 | 1,804,000 | 1,369,000 | 1,061,000 | 1,086,000 | 970,000 | 683,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 23,789,000 | 24,737,000 | 25,179,000 | 24,767,000 | 25,037,000 | 25,226,000 | 26,220,000 | 25,599,000 | 25,302,000 | 24,844,000 | 25,831,000 | 25,696,000 | 25,384,000 | 24,740,000 | 25,385,000 | 24,538,000 | 24,824,000 | 24,106,000 | 24,561,000 | 23,825,000 |
| Return on total capital | 6.92% | 5.00% | 5.63% | 5.56% | 6.42% | 6.75% | 6.52% | 7.25% | 6.63% | 8.57% | 9.67% | 9.58% | 10.38% | 9.26% | 7.11% | 5.58% | 4.27% | 4.51% | 3.95% | 2.87% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,646,000K ÷ ($—K + $23,789,000K)
= 6.92%
Return on total capital is a key financial metric that indicates the efficiency and profitability of a company in generating returns from its total capital employed. For Corteva Inc, the return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The trend reveals an initial increase in the return on total capital from 2.87% in March 2020 to a peak of 10.38% in December 2021.
Subsequently, there was a decline in the return on total capital, dropping to 5.00% by September 30, 2024, before rebounding to 6.92% by the end of December 2024. These variations in return on total capital could be influenced by changes in operating performance, capital structure, or economic conditions impacting Corteva Inc during the period.
Analyzing the fluctuations in return on total capital can provide insights into the company's ability to efficiently utilize its capital to generate profits and create value for shareholders. Further investigation into the factors driving these changes would be necessary to assess the overall financial health and performance of Corteva Inc.
Peer comparison
Dec 31, 2024