Knife River Corporation (KNF)
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 | 326,236 | 303,286 | 193,012 | 189,922 | 212,834 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,476,080 | 1,266,010 | 1,027,460 | 952,844 | — |
| Return on total capital | 22.10% | 23.96% | 18.79% | 19.93% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $326,236K ÷ ($—K + $1,476,080K)
= 22.10%
Knife River Corporation's return on total capital has shown a positive trend over the years, indicating the company's ability to generate returns from its total invested capital. The return on total capital was not provided for December 31, 2020, making it difficult to assess the starting point of the trend. However, from December 31, 2021 to December 31, 2024, the return on total capital exhibited a generally increasing pattern.
In 2021, the return on total capital was 19.93%, which improved to 18.79% in 2022 before experiencing a significant rise to 23.96% in 2023. The performance remained strong in 2024 with a return on total capital of 22.10%. This upward trend suggests that Knife River Corporation has been effectively utilizing its total capital to generate higher returns for its investors and shareholders.
It is important for the company to sustain or improve its return on total capital over time to ensure long-term profitability and value creation. Overall, the consistent improvement in return on total capital reflects positively on Knife River Corporation's financial performance and operational efficiency.
Peer comparison
Dec 31, 2024