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.
Peer comparison
Dec 31, 2023