CVR Energy Inc (CVI)
Return on total capital
| Dec 31, 2024 | Sep 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 154,000 | 578,000 | 915,000 | 1,122,000 | 1,236,000 | 894,000 | 1,072,000 | 962,000 | 766,000 | 838,000 | 442,000 | 87,000 | -81,000 | -302,000 | -334,000 | -334,000 | -138,000 | 67,000 | 285,000 | 580,000 |
| Long-term debt | US$ in thousands | 1,500,000 | 1,500,000 | 1,500,000 | 2,100,000 | — | — | — | 1,400,000 | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 703,000 | 675,000 | 879,000 | 847,000 | 957,000 | 755,000 | 675,000 | 531,000 | 560,000 | 769,000 | 644,000 | 553,000 | 567,000 | 483,000 | 981,000 | 1,019,000 | 1,084,000 | 1,180,000 | 1,225,000 | 1,393,000 |
| Return on total capital | 6.99% | 26.57% | 38.46% | 38.07% | 129.15% | 118.41% | 158.81% | 49.82% | 136.79% | 108.97% | 68.63% | 15.73% | -14.29% | -62.53% | -34.05% | -32.78% | -12.73% | 5.68% | 23.27% | 41.64% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $154,000K ÷ ($1,500,000K + $703,000K)
= 6.99%
The return on total capital for CVR Energy Inc has fluctuated significantly over the past few years, reflecting the company's changing financial performance. The ratio stood at a strong 41.64% as of December 31, 2019, indicating efficient utilization of the company's total capital to generate profits.
However, the return on total capital declined over the next few quarters, dropping to negative levels by the third quarter of 2020. This negative trend continued through the end of 2021, indicating challenges in generating adequate returns on the capital employed in the business.
The performance improved significantly in the first half of 2022, with the return on total capital reaching over 100% by June 30, 2022. This suggests a period of strong profitability and potentially better management of capital resources during this time.
Subsequently, the ratio continued to show a positive trend, reaching a peak of 158.81% by March 31, 2023, before stabilizing at relatively high levels through the end of 2024.
Overall, the return on total capital for CVR Energy Inc has displayed a volatile but improving trend, indicating fluctuations in the company's ability to generate profits relative to its total capital base. It is essential for investors and stakeholders to monitor this metric closely to assess the company's financial performance and efficiency in capital utilization.
Peer comparison
Dec 31, 2024