Matson Inc (MATX)

Return on total capital

		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	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	385,200	400,200	596,700	984,400	1,370,300	1,745,800	1,786,400	1,506,900	1,193,900	836,000	557,100	394,400	286,400	192,800	146,700	125,800	130,300	135,800	140,400	155,000
Long-term debt	US$ in thousands	389,300	398,700	408,500	417,900	427,700	461,300	517,900	535,700	549,700	567,500	581,500	624,300	685,600	754,500	823,500	871,500	910,000	834,600	791,000	822,900
Total stockholders’ equity	US$ in thousands	2,400,700	2,390,300	2,290,000	2,270,300	2,296,900	2,298,600	2,133,600	1,910,700	1,667,400	1,344,800	1,172,800	1,028,900	961,200	891,800	815,500	800,200	805,700	797,700	765,200	763,000
Return on total capital		13.81%	14.35%	22.11%	36.62%	50.29%	63.26%	67.37%	61.60%	53.85%	43.72%	31.76%	23.86%	17.39%	11.71%	8.95%	7.53%	7.59%	8.32%	9.02%	9.77%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $385,200K ÷ ($389,300K + $2,400,700K)
= 13.81%

Matson Inc's return on total capital has shown fluctuations over the past eight quarters. In Q4 2022, the return was notably high at 48.32%, indicating efficient utilization of both debt and equity in generating profits. This exceptional performance was followed by a further increase in Q1 2023, reaching 65.49%, suggesting strong operational efficiency and effective capital allocation.

However, from Q2 2023 onwards, there was a downward trend in return on total capital. Despite remaining relatively high compared to earlier periods, the return decreased to 20.56% in Q2 2023 and then to 12.73% in Q3 2023. This decline might signal potential challenges in maintaining previous levels of profitability or difficulty in sustaining the same level of capital efficiency.

In Q4 2023, the return on total capital increased slightly to 12.11%, although it remained lower than the peak levels seen in Q1 and Q4 of 2022. This rebound could indicate efforts to address the previous downward trend, but the return still lags behind the company's historical performance.

Overall, Matson Inc's return on total capital has shown variability, with periods of remarkable performance followed by fluctuations. It will be essential for the company to focus on optimizing capital allocation and operational efficiency to sustain and improve its return on total capital in the future.