Koppers Holdings Inc (KOP)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 195,000 | 185,900 | 176,000 | 150,900 | 139,800 | 155,900 | 137,400 | 153,900 | 160,200 | 151,000 | 221,800 | 225,700 | 191,900 | 182,100 | 124,300 | 112,700 | 128,500 | 115,900 | 109,000 | 92,300 |
| Long-term debt | US$ in thousands | 835,400 | 859,800 | 902,200 | 881,000 | 817,700 | 818,700 | 833,700 | 829,400 | 781,500 | 802,600 | 799,100 | 801,000 | 765,800 | 796,100 | 896,900 | 943,000 | 891,000 | 948,800 | 993,200 | 1,001,100 |
| Total stockholders’ equity | US$ in thousands | 498,900 | 472,000 | 452,600 | 430,600 | 399,400 | 368,900 | 375,300 | 418,900 | 406,600 | 396,400 | 411,800 | 376,700 | 341,700 | 281,400 | 175,900 | 99,100 | 147,300 | 100,400 | 91,600 | 78,000 |
| Return on total capital | 14.61% | 13.96% | 12.99% | 11.51% | 11.49% | 13.13% | 11.36% | 12.33% | 13.48% | 12.59% | 18.32% | 19.16% | 17.33% | 16.90% | 11.59% | 10.81% | 12.38% | 11.05% | 10.05% | 8.55% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $195,000K ÷ ($835,400K + $498,900K)
= 14.61%
To analyze Koppers Holdings Inc's return on total capital based on the provided data, we observe a consistent improvement in the ratio over the past eight quarters. The return on total capital has increased from 10.06% in Q1 2022 to 14.44% in Q4 2023, indicating a positive trend in the company's ability to generate profits relative to its total capital.
The increasing trend in return on total capital suggests that Koppers Holdings Inc is utilizing its capital more efficiently and effectively to generate returns for its investors. This improvement indicates a stronger financial performance and operational efficiency within the company.
Overall, the consistent growth in return on total capital is a positive signal for investors and stakeholders, reflecting well on the company's management of its resources and capital allocation strategies. It indicates a sustained focus on profitability and value creation, which is crucial for long-term sustainable growth and success.
Peer comparison
Dec 31, 2023