Ingredion Incorporated (INGR)
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 | 1,053,000 | 1,081,000 | 1,011,000 | 944,000 | 940,000 | 909,000 | 883,000 | 849,000 | 769,000 | 705,000 | 693,000 | 702,000 | 322,000 | 393,000 | 375,000 | 275,000 | 598,000 | 603,000 | 640,000 | 684,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,864,000 | 4,004,000 | 3,705,000 | 3,724,000 | 3,593,000 | 3,413,000 | 3,420,000 | 3,301,000 | 3,195,000 | 3,109,000 | 3,183,000 | 3,324,000 | 3,136,000 | 3,116,000 | 2,850,000 | 2,658,000 | 2,981,000 | 2,744,000 | 2,646,000 | 2,606,000 |
| Return on total capital | 27.25% | 27.00% | 27.29% | 25.35% | 26.16% | 26.63% | 25.82% | 25.72% | 24.07% | 22.68% | 21.77% | 21.12% | 10.27% | 12.61% | 13.16% | 10.35% | 20.06% | 21.98% | 24.19% | 26.25% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,053,000K ÷ ($—K + $3,864,000K)
= 27.25%
Ingredion Incorporated has shown a fluctuating trend in its return on total capital over the period from March 31, 2020, to December 31, 2024. The return on total capital measures the efficiency of the company in generating profits from the total capital employed, including both debt and equity.
In March 2020, the return on total capital was strong at 26.25%, indicating the company was effectively utilizing its capital to generate returns for its investors. However, there was a decline in this ratio to 10.35% by March 2021, which may signify a decrease in profitability or a less efficient use of capital.
Subsequently, there was a recovery in the return on total capital, with the ratio improving to 27.29% by June 2024, representing a strong rebound in profitability and capital efficiency. The consistent improvement in the return on total capital from March 2024 to December 2024, where it ranged between 25.35% and 27.25%, suggests that Ingredion Incorporated has been able to enhance its profitability and generate higher returns on the capital invested.
Overall, the analysis of the return on total capital indicates that Ingredion Incorporated has been able to navigate through varying levels of capital efficiency over the years, with recent improvements showing a positive trend towards better utilization of its total capital for generating returns.
Peer comparison
Dec 31, 2024