Eastman Chemical Company (EMN)
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 | 814,000 | 710,000 | 744,000 | 804,000 | 857,000 | 1,404,000 | 1,494,000 | 1,496,000 | 1,530,000 | 1,503,000 | 1,335,000 | 957,000 | 960,000 | 869,000 | 999,000 | 1,325,000 | 1,264,000 | 1,268,000 | 1,411,000 | 1,513,000 |
| Long-term debt | US$ in thousands | 4,305,000 | 4,580,000 | 4,593,000 | 4,636,000 | 4,025,000 | 3,979,000 | 4,012,000 | 4,379,000 | 4,412,000 | 4,442,000 | 5,223,000 | 5,200,000 | 5,269,000 | 5,495,000 | 5,431,000 | 5,399,000 | 5,611,000 | 5,567,000 | 5,624,000 | 5,602,000 |
| Total stockholders’ equity | US$ in thousands | 5,458,000 | 5,352,000 | 5,281,000 | 5,188,000 | 5,153,000 | 5,384,000 | 5,323,000 | 5,893,000 | 5,704,000 | 6,120,000 | 5,944,000 | 6,233,000 | 6,023,000 | 6,075,000 | 6,021,000 | 6,117,000 | 5,958,000 | 6,020,000 | 5,869,000 | 5,843,000 |
| Return on total capital | 8.34% | 7.15% | 7.53% | 8.18% | 9.34% | 15.00% | 16.00% | 14.56% | 15.12% | 14.23% | 11.95% | 8.37% | 8.50% | 7.51% | 8.72% | 11.51% | 10.93% | 10.94% | 12.28% | 13.22% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $814,000K ÷ ($4,305,000K + $5,458,000K)
= 8.34%
Eastman Chemical Co's return on total capital has been fluctuating over the past eight quarters. The company's return on total capital ranged from a high of 13.50% in Q2 2022 to a low of 9.43% in Q3 2023. Overall, the trend shows a gradual decrease in return on total capital from Q2 2022 to Q3 2023, with some slight fluctuations in between.
The recent return on total capital of 10.63% in Q4 2023 indicates that Eastman Chemical Co generated a return of 10.63% for every dollar of capital invested in the business during that quarter. This figure is lower compared to previous quarters, suggesting potential challenges in generating returns on capital.
It is important for Eastman Chemical Co to closely monitor and analyze the factors contributing to the fluctuations in return on total capital to ensure sustainable profitability and effective capital allocation in the future.
Peer comparison
Dec 31, 2023