Minerals Technologies Inc (MTX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 280,000 | 171,800 | 204,000 | 242,900 | 178,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,747,000 | 1,652,000 | 1,579,400 | 1,539,300 | 1,460,800 |
| Return on total capital | 16.03% | 10.40% | 12.92% | 15.78% | 12.19% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $280,000K ÷ ($—K + $1,747,000K)
= 16.03%
Minerals Technologies Inc's return on total capital has exhibited fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The return on total capital increased from 12.19% in 2020 to 15.78% in 2021, indicating improved efficiency in generating profits relative to the total capital invested in the business.
However, there was a slight decrease in the return on total capital to 12.92% in 2022, followed by a more substantial decline to 10.40% in 2023. These decreases may suggest operational challenges or decreased profitability during those years, impacting the company's ability to generate returns on its total capital.
On a positive note, the return on total capital rebounded in 2024, reaching 16.03%. This increase indicates a potential improvement in the company's financial performance and efficiency in utilizing its total capital to generate returns for shareholders.
Overall, while there were fluctuations in Minerals Technologies Inc's return on total capital over the five-year period, the company demonstrated a generally positive trend with a notable rebound in 2024. Further analysis of the underlying factors contributing to these fluctuations would provide a more in-depth understanding of the company's financial performance.
Peer comparison
Dec 31, 2024