HF Sinclair Corp (DINO)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,222,071 | 3,106,178 | 3,332,648 | 4,275,800 | 3,993,174 | |||
| Long-term debt | US$ in thousands | 2,739,080 | 2,861,960 | 2,888,470 | 2,932,990 | 2,948,510 | 3,334,200 | 3,348,100 | 3,374,700 |
| Total stockholders’ equity | US$ in thousands | 10,169,100 | 9,824,680 | 9,708,950 | 9,270,660 | 9,243,820 | 9,015,280 | 9,109,710 | 8,116,230 |
| Return on total capital | 17.21% | 24.48% | 26.46% | 35.04% | 32.75% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,222,071K ÷ ($2,739,080K + $10,169,100K)
= 17.21%
HF Sinclair Corp.'s return on total capital has shown varying trends over the past eight quarters. In Q4 2023, the return on total capital stood at 17.20%, marking a decrease from the previous quarter's figure of 24.04%. However, it is important to note that the return on total capital in Q4 2023 was still higher compared to the returns in Q2 2022 and Q1 2022.
The highest return on total capital was recorded in Q1 2023 at 34.57%, indicating a strong performance in efficiently utilizing both debt and equity capital to generate profits. This was followed by Q4 2022, where the return stood at 32.43%, showcasing consistency in effectively deploying capital to generate returns.
Overall, the return on total capital for HF Sinclair Corp. has demonstrated positive growth trends over the quarters, with occasional fluctuations. This suggests that the company has been successful in efficiently utilizing its total capital to generate profits, although there may be room for improvement in maintaining consistent returns over time.