Kaiser Aluminum Corporation (KALU)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 107,200 | 103,200 | 24,600 | 59,500 | 84,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 668,000 | 652,200 | 631,200 | 692,500 | 732,400 |
| Return on total capital | 16.05% | 15.82% | 3.90% | 8.59% | 11.52% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $107,200K ÷ ($—K + $668,000K)
= 16.05%
The return on total capital of Kaiser Aluminum Corporation has exhibited fluctuations over the past five years. In December 2020, the return on total capital stood at 11.52%, reflecting a satisfactory performance. However, by December 2021, there was a decline to 8.59%, indicating a potential decrease in the company's overall efficiency in generating returns from its invested capital.
Further, in December 2022, the return on total capital dropped significantly to 3.90%, signaling potential challenges in effectively utilizing its capital to generate profits. Nonetheless, the subsequent years saw a notable recovery, with the return on total capital rebounding to 15.82% in December 2023 and further increasing to 16.05% by December 2024. These improvements suggest that Kaiser Aluminum Corporation may have implemented strategic measures to enhance its capital efficiency and profitability.
Overall, the varying trend in return on total capital for Kaiser Aluminum Corporation underscores the importance of closely monitoring and analyzing financial performance indicators to assess the company's operational effectiveness and financial health. It is essential for stakeholders to evaluate the underlying factors influencing these fluctuations to make informed decisions regarding investments and strategic initiatives.
Peer comparison
Dec 31, 2024