Koppers Holdings Inc (KOP)
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 | 145,500 | 195,600 | 140,200 | 160,100 | 159,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 488,700 | 498,900 | 399,400 | 406,600 | 341,700 |
| Return on total capital | 29.77% | 39.21% | 35.10% | 39.38% | 46.53% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $145,500K ÷ ($—K + $488,700K)
= 29.77%
Based on the provided data, Koppers Holdings Inc has experienced a decreasing trend in its return on total capital over the past five years. The return on total capital was 46.53% as of December 31, 2020, but it declined to 39.38% by December 31, 2021. Further decreases were observed in the following years, with the return on total capital being 35.10% as of December 31, 2022, 39.21% by December 31, 2023, and finally dropping to 29.77% by December 31, 2024.
The decline in the return on total capital indicates that the company may be facing challenges in generating sufficient profits relative to the total capital employed in its operations. This trend warrants further investigation into the efficiency of the company's capital allocation and operational performance to identify potential areas for improvement and strategic decision-making.
Peer comparison
Dec 31, 2024