Liberty Oilfield Services Inc (LBRT)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 389,468 | 488,298 | 586,247 | 650,892 | 760,488 | 835,198 | 812,954 | 717,080 | 495,994 | 234,095 | 11,546 | -135,062 | -176,856 | -156,588 | -157,901 | -175,375 | -131,935 | -100,835 | -41,228 | 44,962 |
| Long-term debt | US$ in thousands | 190,500 | 123,000 | 147,000 | 166,000 | 140,000 | 223,000 | 288,000 | 210,000 | 217,426 | 252,682 | 252,937 | 211,192 | 121,445 | 121,125 | 105,221 | 105,317 | 105,411 | 105,504 | 105,596 | 105,625 |
| Total stockholders’ equity | US$ in thousands | 1,978,870 | 1,969,000 | 1,936,900 | 1,884,480 | 1,841,410 | 1,788,560 | 1,673,940 | 1,590,120 | 1,495,020 | 1,404,740 | 1,327,570 | 1,231,260 | 1,213,240 | 1,179,700 | 1,216,810 | 1,204,550 | 1,150,640 | 507,602 | 531,831 | 555,371 |
| Return on total capital | 17.95% | 23.34% | 28.13% | 31.74% | 38.38% | 41.52% | 41.44% | 39.84% | 28.96% | 14.12% | 0.73% | -9.36% | -13.25% | -12.04% | -11.94% | -13.39% | -10.50% | -16.45% | -6.47% | 6.80% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $389,468K ÷ ($190,500K + $1,978,870K)
= 17.95%
Return on total capital is a key financial ratio that measures a company's ability to generate returns for all its providers of capital, including both debt and equity holders.
Analyzing the return on total capital of Liberty Oilfield Services Inc, the ratio fluctuated significantly over the periods provided, ranging from a low of -16.45% in September 2020 to a high of 41.52% in September 2023.
In the earlier periods, the company experienced negative returns on total capital, indicating that it was not efficiently utilizing the capital invested in the business. However, starting from the second half of 2022, the return on total capital showed a positive trend, with significant improvements in profitability.
The highest return on total capital was recorded in the latter half of 2023, reaching above 40%, reflecting a strong performance in generating profits relative to the total capital employed.
Overall, the fluctuation in the return on total capital for Liberty Oilfield Services Inc suggests varying levels of efficiency in capital management over the periods, with recent improvements indicating better profitability and value creation for the company's investors and creditors.
Peer comparison
Dec 31, 2024