CVR Energy Inc (CVI)
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 | 1,123,000 | 963,000 | 87,000 | -333,000 | 580,000 |
| Long-term debt | US$ in thousands | 2,100,000 | 1,400,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 847,000 | 531,000 | 553,000 | 1,019,000 | 1,393,000 |
| Return on total capital | 38.11% | 49.87% | 15.73% | -32.68% | 41.64% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,123,000K ÷ ($2,100,000K + $847,000K)
= 38.11%
CVR Energy Inc's return on total capital has shown fluctuating performance over the past five years. In 2023, the return on total capital was 37.10%, indicating a solid profitability level. This figure decreased from 45.90% in 2022, marking a decline in the company's ability to generate returns from its total capital.
In 2021, the return on total capital was 4.07%, reflecting a relatively low profitability level compared to the previous years. The substantial decrease from 2021 to 2020, where the return on total capital was -10.52%, implies significant challenges in utilizing the company's capital efficiently.
However, the performance improved in 2019 with a return on total capital of 22.26%, indicating a more favorable profitability level compared to 2020 and 2021. Overall, CVR Energy Inc's return on total capital has displayed volatility, suggesting fluctuations in the company's ability to generate returns from its total invested capital over the past five years.
Peer comparison
Dec 31, 2023