Eastman Chemical Company (EMN)
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 | 1,103,000 | 983,000 | 1,077,000 | 523,000 | 903,000 |
| Long-term debt | US$ in thousands | 4,305,000 | 4,025,000 | 4,412,000 | 5,269,000 | 5,611,000 |
| Total stockholders’ equity | US$ in thousands | 5,458,000 | 5,153,000 | 5,704,000 | 6,023,000 | 5,958,000 |
| Return on total capital | 11.30% | 10.71% | 10.65% | 4.63% | 7.81% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,103,000K ÷ ($4,305,000K + $5,458,000K)
= 11.30%
Eastman Chemical Co's return on total capital has shown some fluctuations over the past five years. In 2023, the return on total capital was 10.63%, slightly lower than the previous year's 11.13%. Despite this decrease, the company's return on total capital remains relatively stable compared to 2020 when it was 9.41%. The highest return on total capital was recorded in 2021 at 13.36%, indicating a strong performance that year. Overall, Eastman Chemical Co has demonstrated a consistent ability to generate returns on its invested capital over the past five years, with performance generally in line with previous years.
Peer comparison
Dec 31, 2023