NewMarket Corporation (NEU)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	641,473	607,311	567,686	543,747	526,321	533,222	478,217	435,944	382,936	303,934	285,734	268,969	281,769	324,214	377,800	336,146	357,615	348,673	319,034	389,193
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,461,580	1,364,290	1,235,350	1,152,290	1,077,060	971,943	892,740	821,800	762,407	667,376	721,335	760,090	762,129	772,773	849,210	810,355	759,824	723,526	635,285	639,249
Return on total capital		43.89%	44.51%	45.95%	47.19%	48.87%	54.86%	53.57%	53.05%	50.23%	45.54%	39.61%	35.39%	36.97%	41.95%	44.49%	41.48%	47.07%	48.19%	50.22%	60.88%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $641,473K ÷ ($—K + $1,461,580K)
= 43.89%

NewMarket Corporation's return on total capital has exhibited fluctuating trends over the periods reported. The metric stood at a robust 60.88% as of March 31, 2020, indicating efficient utilization of both equity and debt in generating profits. However, there was a gradual decrease in subsequent periods, reaching a low of 35.39% by March 31, 2022.

From that point onwards, there was a noticeable improvement in the return on total capital, with the figure steadily increasing to 54.86% by September 30, 2023. This positive trend continued into December 31, 2023, where the return on total capital reached its peak at 54.86%.

However, the metric experienced a slight decline in the following periods, ending at 43.89% by December 31, 2024. Overall, NewMarket Corporation has demonstrated varying levels of efficiency in deploying its capital to generate returns, showing both strengths and areas for potential improvement in managing its total capital effectively.