Koppers Holdings Inc (KOP)
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 | 195,000 | 139,800 | 160,200 | 191,900 | 128,300 |
| Long-term debt | US$ in thousands | 835,400 | 817,700 | 781,500 | 765,800 | 891,000 |
| Total stockholders’ equity | US$ in thousands | 498,900 | 399,400 | 406,600 | 341,700 | 147,300 |
| Return on total capital | 14.61% | 11.49% | 13.48% | 17.33% | 12.36% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $195,000K ÷ ($835,400K + $498,900K)
= 14.61%
Koppers Holdings Inc's return on total capital has shown a fluctuating trend over the past five years. In 2023, the company achieved a return on total capital of 14.44%, which represents an improvement from the prior year. This metric was lower in 2022 at 11.11% compared to 2021 where it stood at 10.71%. Notably, Koppers Holdings Inc's return on total capital was highest in 2020 at 14.60%, followed closely by 2019 at 13.05%.
Overall, the company has been able to generate returns on its total capital investment, with fluctuations year over year. The upward trend in 2023 indicates a positive performance in utilizing its capital efficiently to generate profits. However, it may be beneficial for stakeholders to monitor the company's ability to maintain or further improve its return on total capital in the future to ensure sustainable growth and profitability.
Peer comparison
Dec 31, 2023