Everus Construction Group Inc (ECG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 184,359 | 166,023 | 147,491 |
| Long-term debt | US$ in thousands | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 422,612 | 448,850 | 382,247 | — |
| Return on total capital | 0.00% | 41.07% | 43.43% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $422,612K)
= 0.00%
The return on total capital of Everus Construction Group Inc indicates the efficiency with which the company generates profits from all sources of capital, including debt and equity.
In December 31, 2022, the return on total capital stood at an impressive 43.43%, signifying that for every dollar of capital invested, the company generated a return of 43.43 cents. This suggests that Everus Construction Group Inc effectively utilized its capital to generate profits during that period.
By December 31, 2023, the return on total capital slightly decreased to 41.07%, although still indicating a strong performance in capital utilization and profitability. However, the company's return on total capital dropped to 0.00% by December 31, 2024. This sharp decline may signal potential issues in capital allocation or operational efficiency that could impact the company's overall financial performance.
In conclusion, Everus Construction Group Inc demonstrated solid returns on total capital in the earlier years but faced challenges in maintaining profitability by the end of the analyzed period. Further analysis of the company's financial strategies and operational performance may be necessary to understand the factors influencing these fluctuations in return on total capital.
Peer comparison
Dec 31, 2024