Ingredion Incorporated (INGR)
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 | 957,000 | 762,000 | 310,000 | 582,000 | 664,000 |
| Long-term debt | US$ in thousands | 1,740,000 | 1,940,000 | 1,738,000 | 1,748,000 | 1,766,000 |
| Total stockholders’ equity | US$ in thousands | 3,538,000 | 3,147,000 | 3,100,000 | 2,951,000 | 2,720,000 |
| Return on total capital | 18.13% | 14.98% | 6.41% | 12.39% | 14.80% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $957,000K ÷ ($1,740,000K + $3,538,000K)
= 18.13%
Ingredion Inc's return on total capital has shown a consistent upward trend over the past five years, increasing from 15.37% in 2019 to 16.77% in 2023. This indicates that the company is effectively utilizing its total capital investments to generate profits. The steady improvement in the return on total capital suggests that Ingredion Inc is efficiently deploying its resources and assets to generate higher returns for its investors. The company's ability to generate a return on total capital above 10% consistently signifies a positive performance in utilizing both debt and equity capital effectively to generate profits. This trend reflects positively on the company's financial management and strategic decision-making, indicating a solid foundation for sustained growth and value creation for shareholders.
Peer comparison
Dec 31, 2023