Green Brick Partners Inc (GRBK)
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 | 369,264 | 374,368 | 242,815 | 138,709 | 78,683 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,300,700 | 1,061,910 | 874,548 | 640,242 | 523,168 |
| Return on total capital | 28.39% | 35.25% | 27.76% | 21.67% | 15.04% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $369,264K ÷ ($—K + $1,300,700K)
= 28.39%
Green Brick Partners Inc has shown a consistent improvement in its return on total capital over the past five years, with a notable increase from 10.54% in 2019 to 22.58% in 2023. This indicates the company's ability to generate profits from its total invested capital. The steady climb in this ratio suggests effective utilization of both debt and equity to generate returns for shareholders. The upward trend reflects positively on the company's profitability and efficiency in allocating capital to generate returns. Overall, the increasing return on total capital signifies the company's improving financial performance and enhanced value creation for its investors.
Peer comparison
Dec 31, 2023