Ingredion Incorporated (INGR)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 957,000 | 912,000 | 881,000 | 843,000 | 762,000 | 691,000 | 681,000 | 690,000 | 310,000 | 387,000 | 368,000 | 259,000 | 582,000 | 589,000 | 601,000 | 656,000 | 664,000 | 652,000 | 642,000 | 667,000 |
| Long-term debt | US$ in thousands | 1,740,000 | 1,940,000 | 1,939,000 | 1,938,000 | 1,940,000 | 1,739,000 | 1,739,000 | 1,739,000 | 1,738,000 | 1,748,000 | 2,129,000 | 1,749,000 | 1,748,000 | 2,115,000 | 2,140,000 | 1,871,000 | 1,766,000 | 2,001,000 | 1,946,000 | 1,957,000 |
| Total stockholders’ equity | US$ in thousands | 3,538,000 | 3,364,000 | 3,377,000 | 3,263,000 | 3,147,000 | 3,066,000 | 3,146,000 | 3,293,000 | 3,100,000 | 3,084,000 | 2,822,000 | 2,637,000 | 2,951,000 | 2,744,000 | 2,646,000 | 2,606,000 | 2,720,000 | 2,593,000 | 2,596,000 | 2,522,000 |
| Return on total capital | 18.13% | 17.19% | 16.57% | 16.21% | 14.98% | 14.38% | 13.94% | 13.71% | 6.41% | 8.01% | 7.43% | 5.91% | 12.39% | 12.12% | 12.56% | 14.65% | 14.80% | 14.19% | 14.13% | 14.89% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 positive upward trend over the past eight quarters, indicating improving efficiency in generating returns from its total invested capital. The company's return on total capital has increased steadily from 12.17% in Q1 2022 to 16.77% in Q4 2023.
The rising trend indicates that Ingredion Inc is effectively utilizing its total capital to generate profits for its investors. This could be attributed to improved operational efficiency, better capital allocation decisions, or enhanced profitability of the company's core business activities.
Overall, the consistent increase in return on total capital reflects positively on Ingredion Inc's financial performance and management effectiveness in deploying its capital resources to drive profitability.
Peer comparison
Dec 31, 2023