Green Plains Renewable Energy Inc (GPRE)

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	-61,335	-104,241	-194,152	-93,177	-89,841	-60,468	-44,745	-77,837	3,018	-40,187	-7,077	-41,122	-119,204	-89,672	-113,642	-153,013	-147,976	-39,334	-6,054	51,890
Long-term debt	US$ in thousands	491,918	491,945	493,571	495,114	495,243	495,269	495,027	557,937	514,006	514,434	538,619	537,880	287,299	345,056	341,219	247,210	243,990	248,289	370,880	301,033
Total stockholders’ equity	US$ in thousands	843,733	828,149	777,948	822,988	910,031	962,042	931,173	890,525	950,500	971,429	864,071	787,568	646,852	685,626	741,779	766,020	751,905	792,954	879,129	908,117
Return on total capital		-4.59%	-7.90%	-15.27%	-7.07%	-6.39%	-4.15%	-3.14%	-5.37%	0.21%	-2.70%	-0.50%	-3.10%	-12.76%	-8.70%	-10.49%	-15.10%	-14.86%	-3.78%	-0.48%	4.29%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-61,335K ÷ ($491,918K + $843,733K)
= -4.59%

Green Plains Inc's return on total capital has been fluctuating over the past eight quarters, ranging from -12.05% in Q2 2023 to -2.58% in Q2 2022. The company's performance in terms of generating returns from its total capital has been negative in each of these quarters, indicating inefficiency in capital allocation and utilization. The declining trend in return on total capital from Q1 2022 to Q2 2023 suggests that the company may be facing challenges in improving its operational efficiency and profitability. Management should carefully evaluate the reasons behind these negative returns and implement strategic measures to enhance the company's overall capital utilization efficiency.