Kirby Corporation (KEX)
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 | 346,163 | 209,093 | -248,315 | -413,566 | 245,142 |
| Long-term debt | US$ in thousands | 1,008,530 | 1,076,330 | 1,161,430 | 1,468,550 | 1,369,750 |
| Total stockholders’ equity | US$ in thousands | 3,185,430 | 3,042,880 | 2,886,320 | 3,084,310 | 3,368,620 |
| Return on total capital | 8.25% | 5.08% | -6.13% | -9.08% | 5.17% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $346,163K ÷ ($1,008,530K + $3,185,430K)
= 8.25%
The return on total capital for Kirby Corp. has shown variability over the past five years. In 2023, the return on total capital improved to 7.86%, a significant increase from the previous year's 4.48%. This improvement suggests that Kirby Corp. was able to generate a higher return relative to its total invested capital in 2023.
Comparing 2023 to 2019, the return on total capital has still increased despite fluctuating performance in the intervening years. The corporation achieved a return of 4.94% in 2019, which demonstrates that Kirby Corp. has made progress in enhancing its efficiency in generating profitability relative to its total capital base. Overall, the increasing trend in return on total capital indicates that Kirby Corp. has been making strides in efficiently utilizing its capital resources in recent years.
Peer comparison
Dec 31, 2023