Myers Industries Inc (MYE)

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	72,405	83,941	49,301	53,759	38,192
Long-term debt	US$ in thousands	31,989	93,962	90,945	37,582	77,176
Total stockholders’ equity	US$ in thousands	292,800	256,427	209,325	189,100	166,682
Return on total capital		22.29%	23.96%	16.42%	23.72%	15.66%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $72,405K ÷ ($31,989K + $292,800K)
= 22.29%

Myers Industries Inc.'s return on total capital has fluctuated over the past five years. The ratio stood at 20.06% as of December 31, 2023, representing a decrease from the previous year's figure of 23.31%. This decline may indicate a lower efficiency in generating profits relative to the capital invested in the business.

Comparing the latest ratio to earlier years, it is evident that the company's return on total capital has shown variability. The ratio was highest in 2022 at 23.31%, indicating a peak in profitability relative to the invested capital. In contrast, the returns in 2021, 2020, and 2019 were relatively stable around the 15% mark.

Overall, while Myers Industries Inc. has experienced fluctuations in its return on total capital, it is essential for the company to monitor and assess its capital allocation strategies and operational efficiency to maintain and potentially improve its profitability in the future.