Green Brick Partners Inc (GRBK)
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 | — | 355,205 | 359,082 | 227,790 | 122,470 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,625,420 | 1,300,700 | 1,061,910 | 874,548 | 640,242 |
| Return on total capital | 0.00% | 27.31% | 33.81% | 26.05% | 19.13% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,625,420K)
= 0.00%
Green Brick Partners Inc's return on total capital has shown a positive trend over the years, starting at 19.13% on December 31, 2020, and reaching its peak at 33.81% on December 31, 2022. The significant increase in 2022 indicates that the company efficiently utilized its capital to generate returns. However, there was a drop in 2023 to 27.31%, which suggests a potential decrease in capital efficiency or profitability. The return on total capital dropping to 0.00% on December 31, 2024, raises concerns about the company's ability to generate profits relative to the total capital employed, indicating a possible decline in financial performance and capital utilization effectiveness. Overall, monitoring and understanding the factors influencing these fluctuations in return on total capital is crucial for assessing Green Brick Partners Inc's financial health and performance.
Peer comparison
Dec 31, 2024