Dorian LPG Ltd (LPG)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 328,830 | 330,233 | 277,386 | 225,036 | 198,361 | 152,056 | 117,113 | 108,090 | 92,399 | 101,213 | 120,538 | 106,837 | 116,101 | 119,581 | 119,464 | 163,316 | 161,069 | 107,507 | 75,061 | 25,476 |
| Long-term debt | US$ in thousands | 551,549 | 564,686 | 578,167 | 591,227 | 604,257 | 577,202 | 589,961 | 605,107 | 590,687 | 506,738 | 500,392 | 527,318 | 539,652 | 552,103 | 564,343 | 594,246 | 581,919 | 586,305 | 601,577 | 616,875 |
| Total stockholders’ equity | US$ in thousands | 1,023,530 | 984,058 | 923,309 | 885,609 | 873,846 | 837,327 | 825,369 | 844,349 | 920,151 | 924,191 | 906,949 | 938,548 | 946,825 | 1,015,770 | 989,591 | 989,953 | 977,052 | 982,025 | 954,372 | 919,080 |
| Return on total capital | 20.88% | 21.32% | 18.47% | 15.24% | 13.42% | 10.75% | 8.27% | 7.46% | 6.12% | 7.07% | 8.56% | 7.29% | 7.81% | 7.63% | 7.69% | 10.31% | 10.33% | 6.85% | 4.82% | 1.66% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $328,830K ÷ ($551,549K + $1,023,530K)
= 20.88%
Dorian LPG Ltd's return on total capital has exhibited fluctuations over the past several quarters. The ratio ranged from a low of 1.66% in the third quarter of 2019 to a high of 21.32% in the fourth quarter of 2023. Notably, there was an overall upward trend in return on total capital from the end of 2019 to the first quarter of 2024, indicating an improvement in the company's ability to generate profits relative to its total capital employed.
It is worth mentioning that the return on total capital peaked at 21.32% in December 2023, signifying the company's efficient utilization of both equity and debt to generate returns. However, the ratio slightly decreased to 20.88% in March 2024, which may warrant further analysis to understand the underlying factors affecting the return on total capital in the most recent quarter.
Overall, the trend in Dorian LPG Ltd's return on total capital indicates the company's effectiveness in generating profits from its invested capital, with fluctuations reflecting changes in performance and efficiency in capital utilization over the quarters reviewed.