Eastman Chemical Company (EMN)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,344,000 | 1,192,000 | 1,126,000 | 1,070,000 | 1,058,000 | 1,012,000 | 1,075,000 | 1,221,000 | 1,285,000 | 1,706,000 | 1,808,000 | 1,280,000 | 1,336,000 | 835,000 | 646,000 | 899,000 | 897,000 | 961,000 | 1,091,000 | 1,285,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,779,000 | 5,654,000 | 5,627,000 | 5,538,000 | 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 |
| Return on total capital | 23.26% | 21.08% | 20.01% | 19.32% | 19.38% | 18.91% | 20.36% | 23.54% | 24.94% | 31.69% | 33.97% | 21.72% | 23.42% | 13.64% | 10.87% | 14.42% | 14.89% | 15.82% | 18.12% | 21.01% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,344,000K ÷ ($—K + $5,779,000K)
= 23.26%
Eastman Chemical Company's return on total capital has exhibited variability over the period under review. The return on total capital was at its highest in June 2022, reaching 33.97%, indicating a strong performance in generating returns relative to the total capital employed. Subsequently, there was a decrease in the return on total capital in the following quarters, showing a fluctuating trend. Despite the fluctuations, the company's return on total capital remained relatively strong, consistently above 10% in each quarter. The latest available data for December 2024 demonstrates a return on total capital of 23.26%, suggesting a solid performance in generating returns on the total capital deployed by the company. Overall, the trend in return on total capital indicates that Eastman Chemical Company has been efficient in utilizing its capital to generate profits, with fluctuations reflecting potential changes in the company's financial performance or market conditions.
Peer comparison
Dec 31, 2024