HF Sinclair Corp (DINO)
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 | 383,000 | 2,345,350 | 4,107,250 | 924,143 | -624,769 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,278,000 | 10,169,100 | 9,243,820 | 5,687,880 | 5,168,360 |
| Return on total capital | 4.13% | 23.06% | 44.43% | 16.25% | -12.09% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $383,000K ÷ ($—K + $9,278,000K)
= 4.13%
HF Sinclair Corp's return on total capital has shown significant fluctuations over the past five years.
At the end of 2020, the company had a negative return on total capital of -12.09%, indicating that the company's capital investments did not generate sufficient returns during that period. However, the company managed to improve its performance in the following years, with a notable increase to 16.25% by the end of 2021.
The most significant improvement was observed by the end of 2022 when the return on total capital surged to 44.43%, reflecting a more efficient utilization of the company's capital resources to generate profits. However, in 2023, the return on total capital decreased to 23.06%, indicating a slight decline in the company's capital efficiency.
By the end of 2024, the return on total capital had dropped further to 4.13%, signaling a decrease in the company's profitability relative to its total capital employed.
Overall, HF Sinclair Corp's return on total capital has shown volatility over the past five years, with periods of significant improvement followed by some decline. It is essential for the company to maintain a consistent focus on optimizing its capital utilization to sustain and improve its profitability in the future.