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.