Liberty Oilfield Services Inc (LBRT)
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 | 389,468 | 760,579 | 495,890 | -181,224 | -131,935 |
| Long-term debt | US$ in thousands | 190,500 | 140,000 | 217,426 | 121,445 | 105,411 |
| Total stockholders’ equity | US$ in thousands | 1,978,870 | 1,841,410 | 1,495,020 | 1,213,240 | 1,150,640 |
| Return on total capital | 17.95% | 38.39% | 28.96% | -13.58% | -10.50% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $389,468K ÷ ($190,500K + $1,978,870K)
= 17.95%
The Return on Total Capital (RoTC) of Liberty Oilfield Services Inc has fluctuated over the years based on the provided data. In December 31, 2020 and December 31, 2021, the company experienced negative RoTC of -10.50% and -13.58% respectively, indicating that the company had challenges generating returns relative to its total capital investment during those periods.
However, there was a significant improvement in the company's performance in the following years. By December 31, 2022, Liberty Oilfield Services Inc achieved a RoTC of 28.96%, which further increased to 38.39% by December 31, 2023, signifying a strong return on the total capital employed. The company demonstrated effective capital utilization and profitability during these periods.
In December 31, 2024, the RoTC decreased to 17.95%, although still positive, reflecting a slight decline in the company's ability to generate returns compared to the previous year. Overall, the trend in RoTC indicates that Liberty Oilfield Services Inc has shown resilience and the ability to create value from its total capital investment, with notable improvements in recent years.
Peer comparison
Dec 31, 2024