Green Brick Partners Inc (GRBK)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	350,687	441,396	419,702	374,231	355,205	332,321	330,260	363,652	359,082	364,928	332,487	272,380	227,790	187,557	168,639	129,871	122,470	110,187	91,142	84,375
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,625,420	1,520,740	1,439,240	1,383,330	1,300,700	1,245,220	1,174,080	1,114,150	1,061,910	1,009,240	947,391	912,183	874,548	766,789	717,389	666,131	640,242	610,079	575,759	542,982
Return on total capital		21.58%	29.03%	29.16%	27.05%	27.31%	26.69%	28.13%	32.64%	33.81%	36.16%	35.10%	29.86%	26.05%	24.46%	23.51%	19.50%	19.13%	18.06%	15.83%	15.54%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $350,687K ÷ ($—K + $1,625,420K)
= 21.58%

Green Brick Partners Inc's return on total capital has shown a generally increasing trend from March 31, 2020, to June 30, 2022, gradually improving from 15.54% to 35.10%. The company's return on total capital peaked at 36.16% on September 30, 2022, before starting to decline. Despite some fluctuations, the return on total capital remained relatively high, above 25% for most of the period up to June 30, 2023.

However, starting from September 30, 2023, Green Brick Partners Inc experienced a decline in its return on total capital, dropping to 21.58% by December 31, 2024. This decrease could indicate challenges in capital management or declining efficiency in generating returns on the total invested capital. It may require further analysis to understand the reasons behind the decline and potential strategies to improve the return on total capital in the future.