Metallus Inc (MTUS)
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 | 99,100 | 101,000 | 182,900 | -48,100 | -110,400 |
| Long-term debt | US$ in thousands | 0 | 0 | 0 | 39,300 | 168,600 |
| Total stockholders’ equity | US$ in thousands | 731,600 | 686,500 | 664,600 | 507,500 | 563,100 |
| Return on total capital | 13.55% | 14.71% | 27.52% | -8.80% | -15.09% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $99,100K ÷ ($0K + $731,600K)
= 13.55%
Metallus Inc's return on total capital has shown a decreasing trend over the past five years. The ratio was positive in all years, except for 2020 and 2019 when it turned negative, indicating a loss on the total invested capital. The significant drop in 2019 (-15.09%) was followed by a substantial improvement in 2020, although still negative at -8.80%.
In 2021, there was a notable increase in the return on total capital to 27.52%, indicating that the company generated a relatively high return on the total capital invested. However, this strong performance was not sustained as the ratio decreased to 14.71% in 2022 and further to 13.55% in 2023.
The declining trend in return on total capital could suggest decreasing efficiency in generating profits relative to the total capital employed by the company. This trend may raise concerns about the company's ability to generate adequate returns on the capital invested, which could impact its long-term financial health and sustainability.
Peer comparison
Dec 31, 2023