Enviri Corporation (NVRI)
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 | 45,936 | -94,532 | 69,075 | 23,182 | 550,671 |
| Long-term debt | US$ in thousands | 1,401,440 | 1,337,000 | 1,359,450 | 1,271,190 | 775,498 |
| Total stockholders’ equity | US$ in thousands | 523,151 | 569,442 | 748,160 | 657,154 | 741,580 |
| Return on total capital | 2.39% | -4.96% | 3.28% | 1.20% | 36.30% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $45,936K ÷ ($1,401,440K + $523,151K)
= 2.39%
The return on total capital for Enviri Corp has fluctuated over the past five years. In 2023, the return on total capital improved to 6.20% compared to 3.47% in 2022 and 3.97% in 2021. This indicates that the company generated a higher return relative to the total capital employed in the business. However, when compared to the 6.69% return in 2019, the return on total capital in 2023 was still lower. It is essential for Enviri Corp to continue monitoring and optimizing its capital allocation and operational efficiency to sustain and potentially increase its return on total capital in the future.