Green Plains Renewable Energy Inc (GPRE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -47,459 | -61,298 | -89,829 | 2,997 | -119,165 |
| Long-term debt | US$ in thousands | 432,460 | 491,918 | 495,243 | 514,006 | 287,299 |
| Total stockholders’ equity | US$ in thousands | 865,215 | 843,733 | 910,031 | 950,500 | 646,852 |
| Return on total capital | -3.66% | -4.59% | -6.39% | 0.20% | -12.76% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-47,459K ÷ ($432,460K + $865,215K)
= -3.66%
The return on total capital for Green Plains Renewable Energy Inc has shown significant fluctuations over the last five years. In December 2020, the return on total capital was -12.76%, indicating that the company's capital utilization was not efficient, resulting in a negative return. However, by December 2021, the return improved slightly to 0.20%, but remained low, suggesting that the company may have started to enhance its capital efficiency.
In the following years, the return on total capital continued to fluctuate. By December 2022, it dropped to -6.39%, indicating a decrease in capital efficiency once again. Subsequently, in December 2023 and 2024, the return on total capital further declined to -4.59% and -3.66% respectively, showing that the company struggled to generate adequate returns on its total capital.
Overall, the trend in Green Plains Renewable Energy Inc's return on total capital over the years indicates inconsistency in capital management and efficiency. The company may need to focus on improving its capital utilization and operational performance to enhance its return on total capital in the future.
Peer comparison
Dec 31, 2024