Minerals Technologies Inc (MTX)
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 | 167,000 | 198,200 | 238,200 | 175,000 | 198,700 |
| Long-term debt | US$ in thousands | 911,100 | 928,100 | 936,200 | 933,200 | 824,300 |
| Total stockholders’ equity | US$ in thousands | 1,652,000 | 1,579,500 | 1,539,300 | 1,460,800 | 1,402,700 |
| Return on total capital | 6.52% | 7.90% | 9.62% | 7.31% | 8.92% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $167,000K ÷ ($911,100K + $1,652,000K)
= 6.52%
Minerals Technologies, Inc. has shown a consistent performance in terms of its return on total capital over the past five years. The return on total capital has gradually increased from 10.07% in 2019 to 10.66% in 2023. This indicates that the company has been effectively utilizing both equity and debt to generate profits.
The improvement in return on total capital reflects positively on the company's ability to generate value from the capital invested in its operations. It suggests that Minerals Technologies, Inc. has been successful in generating returns that exceed the cost of both equity and debt financing, indicating efficiency in capital allocation and operational performance.
The consistent and upward trend in return on total capital over the years signifies the company's ability to maintain profitability and create value for its shareholders. Investors and stakeholders can view this trend as a positive indicator of the company's financial health and management's effectiveness in utilizing resources to generate returns.
Peer comparison
Dec 31, 2023