Dow Inc (DOW)
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 | 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,453,000 | 2,596,000 | 3,147,000 | 4,595,000 | 6,789,000 | 8,043,000 | 9,309,000 | 9,604,000 | 8,868,000 | 8,634,000 | 6,452,000 | 3,849,000 | 2,936,000 | -1,048,000 | -613,000 | -191,000 | 155,000 | |||
| Long-term debt | US$ in thousands | — | — | — | 14,239,000 | 13,875,000 | 11,622,000 | 12,726,000 | 15,320,000 | 17,125,000 | 16,970,000 | 18,682,000 | 19,319,000 | 20,604,000 | 19,641,000 | 19,117,000 | 17,639,000 | 18,661,000 | 19,675,000 | 19,372,000 | 20,850,000 |
| Total stockholders’ equity | US$ in thousands | 18,607,000 | 19,567,000 | 19,997,000 | 20,181,000 | 20,718,000 | 18,117,000 | 18,973,000 | 18,880,000 | 18,165,000 | 16,439,000 | 15,573,000 | 14,003,000 | 12,435,000 | 12,354,000 | 12,537,000 | 12,906,000 | 13,541,000 | 17,399,000 | 17,911,000 | 32,668,000 |
| Return on total capital | 7.81% | 13.27% | 15.74% | 13.35% | 19.63% | 27.05% | 29.37% | 28.08% | 25.13% | 25.84% | 18.84% | 11.55% | 8.89% | -3.28% | -1.94% | -0.63% | 0.48% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,453,000K ÷ ($—K + $18,607,000K)
= 7.81%
The return on total capital for Dow Inc has exhibited some fluctuations over the last eight quarters. It declined from 29.04% in March 2022 to 5.88% in December 2023 with a significant drop of 23.16%. This decrease likely indicates a decline in the company's ability to generate profits from its total capital investment. However, it is essential to note that the return on total capital was relatively high in the first half of 2022, exceeding 20% in each quarter. This indicates that Dow Inc was effectively utilizing its total capital to generate returns during this period. The recent decline in the return on total capital suggests a need for further analysis to understand the factors contributing to this trend.
Peer comparison
Dec 31, 2023