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