Liberty Oilfield Services Inc (LBRT)

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	760,579	495,890	-181,224	-131,935	67,736
Long-term debt	US$ in thousands	140,000	217,426	121,445	105,411	105,731
Total stockholders’ equity	US$ in thousands	1,841,410	1,495,020	1,213,240	1,150,640	554,827
Return on total capital		38.39%	28.96%	-13.58%	-10.50%	10.25%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $760,579K ÷ ($140,000K + $1,841,410K)
= 38.39%

Based on the data provided, it is observed that Liberty Energy Inc's return on total capital has been fluctuating over the past five years. In 2023, the return on total capital was 34.97%, showcasing a significant improvement compared to the previous year's 28.12%. However, in 2021 and 2020, the company experienced negative returns on total capital, indicating that the company's capital was not generating sufficient profits during these periods. It is notable that in 2019, the return on total capital was positive at 14.97%.

Overall, the fluctuation in Liberty Energy Inc's return on total capital over the years suggests varying levels of efficiency in utilizing the company's total capital to generate profits. This metric is essential for assessing the company's profitability and efficiency in deploying its capital resources. Further analysis and insights into the company's operational and financial performance would be necessary to understand the factors driving these fluctuations in return on total capital.