Matson Inc (MATX)
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 | 606,900 | 385,200 | 1,370,300 | 1,193,900 | 286,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,652,000 | 2,400,700 | 2,296,900 | 1,667,400 | 961,200 |
| Return on total capital | 22.88% | 16.05% | 59.66% | 71.60% | 29.80% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $606,900K ÷ ($—K + $2,652,000K)
= 22.88%
Matson Inc's return on total capital has shown fluctuating performance over the past five years. The metric stood at 29.80% as of December 31, 2020, significantly increased to 71.60% by the end of 2021, showcasing a substantial improvement in capital utilization efficiency. However, in the subsequent years, there was some volatility in the return on total capital with figures of 59.66% in 2022, 16.05% in 2023, and 22.88% in 2024.
This fluctuation suggests that Matson Inc's ability to generate profits relative to the total capital employed has varied over the years. Investors and analysts may want to delve deeper into the company's financial performance and operational strategies to understand the reasons behind these fluctuations in return on total capital. Furthermore, ongoing monitoring of this ratio will be crucial to assess the company's long-term profitability and sustainability.
Peer comparison
Dec 31, 2024