Warrior Met Coal Inc (HCC)
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 | 263,043 | 400,808 | 469,443 | 488,978 | 541,406 | 525,458 | 542,143 | 824,235 | 801,424 | 868,076 | 794,884 | 419,523 | 243,753 | 21,715 | -44,056 | -46,557 | -27,139 | 34,710 | 103,836 | 257,112 |
| Long-term debt | US$ in thousands | 153,612 | 153,460 | 153,312 | 153,166 | 153,023 | 152,883 | 295,311 | 295,051 | 302,588 | 303,916 | 340,356 | 340,078 | 339,806 | 340,491 | 380,292 | 380,098 | 379,908 | 379,722 | 379,541 | 409,363 |
| Total stockholders’ equity | US$ in thousands | 2,090,820 | 2,086,830 | 2,048,390 | 1,978,200 | 1,874,450 | 1,745,210 | 1,661,300 | 1,578,290 | 1,447,520 | 1,347,630 | 1,291,060 | 1,018,610 | 871,983 | 735,363 | 698,154 | 700,303 | 725,241 | 759,711 | 774,963 | 785,122 |
| Return on total capital | 11.72% | 17.89% | 21.32% | 22.94% | 26.70% | 27.68% | 27.71% | 44.00% | 45.79% | 52.56% | 48.72% | 30.88% | 20.12% | 2.02% | -4.09% | -4.31% | -2.46% | 3.05% | 8.99% | 21.52% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $263,043K ÷ ($153,612K + $2,090,820K)
= 11.72%
Warrior Met Coal Inc's return on total capital has shown a fluctuating trend over the provided periods. The return on total capital was generally positive from March 2020 to December 2020, with notable declines in the latter part of the period. Subsequently, the company experienced negative returns in the first half of 2021, reaching the lowest point in March 2021.
From September 2021 onwards, Warrior Met Coal Inc started to show signs of recovery, with the return on total capital gradually improving. The trend continued positively through 2022, reaching significant levels by the end of the year. In the first half of 2023, the company maintained a relatively strong return on total capital, although there was a slight dip in June 2023.
In the latter half of 2023, Warrior Met Coal Inc's return on total capital stabilized around the mid-20% range, showing consistency in performance. However, there was a slight decline by the end of 2024, with the return on total capital dropping to 11.72%.
Overall, Warrior Met Coal Inc's return on total capital has exhibited both highs and lows, reflecting fluctuations in the company's efficiency in generating returns from its total capital base. It is essential for investors and stakeholders to consider the company's ability to sustain and improve this ratio over the long term.
Peer comparison
Dec 31, 2024