Dine Brands Global Inc (DIN)

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	185,703	182,385	193,423	-32,694	208,673
Long-term debt	US$ in thousands	1,084,500	1,241,910	1,279,600	1,492,000	1,288,250
Total stockholders’ equity	US$ in thousands	-250,974	-301,084	-242,807	-354,651	-241,774
Return on total capital		22.28%	19.39%	18.66%	-2.87%	19.94%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $185,703K ÷ ($1,084,500K + $-250,974K)
= 22.28%

Dine Brands Global Inc's return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital increased to 19.01% from 16.17% in 2022, indicating improved efficiency in generating returns from the total capital employed. This upward trend aligns with the company's goal of maximizing profitability relative to its total invested capital.

In 2021, the return on total capital was 17.22%, showcasing solid performance, though slightly lower than in 2023. The significant increase in 2023 from 2020's return of 7.72% suggests a notable turnaround in capital efficiency. The company's return on total capital was relatively high in 2019 at 18.20%, showcasing strong performance, though slightly lower compared to the latest year.

The consistent focus on improving operational efficiency and capital utilization seems to have positively impacted Dine Brands Global Inc's return on total capital in recent years, underlining a potentially effective capital allocation strategy. Monitoring this ratio over time can provide insights into the company's ability to generate returns relative to its total invested capital.