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.