Callaway Golf Company (MODG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 245,000 | 284,700 | 466,200 | -80,600 | 134,441 |
| Long-term debt | US$ in thousands | 1,518,200 | 1,176,300 | 1,025,300 | 650,564 | 443,259 |
| Total stockholders’ equity | US$ in thousands | 3,878,200 | 3,774,300 | 3,682,900 | 675,644 | 767,353 |
| Return on total capital | 4.54% | 5.75% | 9.90% | -6.08% | 11.11% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $245,000K ÷ ($1,518,200K + $3,878,200K)
= 4.54%
The return on total capital for Topgolf Callaway Brands Corp has shown a decreasing trend over the past five years. In 2019, the return on total capital was the highest at 9.74%, indicating the company was efficient in generating returns against its total capital investment. However, since then, the return on total capital has been gradually decreasing, reaching 3.70% in 2023. This decline suggests that the company's ability to generate returns on its total capital has weakened over time. It is important for the company to closely monitor and improve its capital allocation strategies to enhance its efficiency in generating returns for its stakeholders.
Peer comparison
Dec 31, 2023