Warrior Met Coal Inc (HCC)
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 | 254,890 | 541,406 | 801,424 | 243,753 | -27,139 |
| Long-term debt | US$ in thousands | 153,612 | 153,023 | 302,588 | 339,806 | 379,908 |
| Total stockholders’ equity | US$ in thousands | 2,090,820 | 1,874,450 | 1,447,520 | 871,983 | 725,241 |
| Return on total capital | 11.36% | 26.70% | 45.79% | 20.12% | -2.46% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $254,890K ÷ ($153,612K + $2,090,820K)
= 11.36%
Warrior Met Coal Inc's return on total capital has shown significant fluctuations over the years based on the provided data. The company experienced a negative return on total capital of -2.46% as of December 31, 2020, indicating inefficient capital utilization or potential financial difficulties. However, there was a substantial improvement in performance as of December 31, 2021, with a return on total capital of 20.12%, suggesting better utilization of capital and higher profitability.
The trend continued positively in 2022, where the return on total capital surged to 45.79%, indicating a significant increase in profitability and efficient allocation of resources. The following year, as of December 31, 2023, the return on total capital remained strong at 26.70%, signaling sustained profitability and effective capital management.
However, by December 31, 2024, the return on total capital decreased to 11.36%, which, although lower than the previous years, still indicates a positive return on the capital invested. Overall, Warrior Met Coal Inc's return on total capital has shown a dynamic performance, demonstrating both strengths and areas for improvement in capital utilization and profitability.
Peer comparison
Dec 31, 2024