CVR Energy Inc (CVI)
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 | 58,000 | 1,123,000 | 963,000 | 87,000 | -333,000 |
| Long-term debt | US$ in thousands | 1,500,000 | 2,100,000 | 1,400,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 703,000 | 847,000 | 531,000 | 553,000 | 1,019,000 |
| Return on total capital | 2.63% | 38.11% | 49.87% | 15.73% | -32.68% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $58,000K ÷ ($1,500,000K + $703,000K)
= 2.63%
From the data provided, we can observe the trend in CVR Energy Inc's return on total capital over the years. In 2020, the return on total capital was negative at -32.68%, indicating that the company experienced a loss in relation to the total capital employed. However, there was a significant turnaround in 2021, with the return on total capital increasing to 15.73%, reflecting an improvement in the company's operational performance.
In the following years, CVR Energy Inc continued to demonstrate strong returns on total capital, reaching 49.87% in 2022 and 38.11% in 2023. These figures suggest that the company was able to effectively utilize its capital to generate profits and create value for its stakeholders. However, there was a slight decline in 2024, with the return on total capital dropping to 2.63%.
Overall, the fluctuation in CVR Energy Inc's return on total capital over the period indicates varying levels of efficiency in using its total capital to generate returns. It is essential for the company to continue monitoring and optimizing its capital allocation strategies to ensure sustainable profitability and growth.
Peer comparison
Dec 31, 2024