Green Plains Renewable Energy Inc (GPRE)

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	-61,298	-89,829	2,997	-119,165	-147,976
Long-term debt	US$ in thousands	491,918	495,243	514,006	287,299	243,990
Total stockholders’ equity	US$ in thousands	843,733	910,031	950,500	646,852	751,905
Return on total capital		-4.59%	-6.39%	0.20%	-12.76%	-14.86%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-61,298K ÷ ($491,918K + $843,733K)
= -4.59%

The return on total capital for Green Plains Inc has been fluctuating over the past five years. In 2023, the company experienced a return on total capital of -4.60%, which was an improvement from the previous year's -6.40%. However, the return remains negative, indicating that the company's capital utilization and profitability are below optimal levels.

The trend shows variability in performance, with the highest negative return occurring in 2019 at -10.62%. This suggests that Green Plains Inc may have struggled with efficiently utilizing its capital resources to generate profits in that year.

Overall, the company's return on total capital has shown inconsistency and remains negative in recent years. Green Plains Inc may need to reassess its capital allocation and operational efficiency strategies to improve its profitability and return on capital in the future.