Knife River Corporation (KNF)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 325,579 | 323,977 | 322,581 | 301,255 | 307,558 | 297,501 | 229,992 | 191,599 | 188,843 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,476,100 | 1,448,930 | 1,298,710 | 1,218,630 | 1,266,000 | 1,243,020 | 1,094,900 | 974,769 | 1,027,460 |
| Return on total capital | 22.06% | 22.36% | 24.84% | 24.72% | 24.29% | 23.93% | 21.01% | 19.66% | 18.38% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $325,579K ÷ ($—K + $1,476,100K)
= 22.06%
Knife River Corporation's return on total capital has shown a favorable trend over the periods provided. The return on total capital increased from 18.38% as of December 31, 2022, to 22.06% by December 31, 2024. This indicates that the company has been effectively utilizing its total capital to generate profits.
The return on total capital peaked at 24.84% on June 30, 2024, before slightly declining in the subsequent periods. However, the return remained above 20% from June 30, 2023, onwards, suggesting consistent strong performance in capital utilization.
Overall, the increasing trend in return on total capital reflects positively on Knife River Corporation's operational efficiency and financial management, showing the ability to generate earnings in relation to the total capital employed by the company.
Peer comparison
Dec 31, 2024