Helix Energy Solutions Group Inc (HLX)

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	28,873	-55,005	-47,007	34,011	96,964
Long-term debt	US$ in thousands	313,430	225,875	262,137	258,912	306,122
Total stockholders’ equity	US$ in thousands	1,501,000	1,516,710	1,647,470	1,740,500	1,699,590
Return on total capital		1.59%	-3.16%	-2.46%	1.70%	4.83%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $28,873K ÷ ($313,430K + $1,501,000K)
= 1.59%

Helix Energy Solutions Group Inc's return on total capital has shown fluctuating trends over the past five years. The company's return on total capital was negative in 2022 and 2021, indicating that the company may have struggled to generate sufficient returns from its total capital investments during those years. However, there was a notable improvement in 2023, with a return on total capital of 5.81%, indicating a better utilization of the company's total capital in generating profits.

In general, the return on total capital is an important metric that reflects the efficiency of a company in generating profits from its total invested capital. It is essential to monitor these trends over time to assess the company's overall financial performance and management effectiveness in utilizing its resources to create shareholder value.