Enviri Corporation (NVRI)
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 | 10,547 | 98,660 | -50,185 | 97,267 | 372 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 411,448 | 523,151 | 569,442 | 748,160 | 657,154 |
| Return on total capital | 2.56% | 18.86% | -8.81% | 13.00% | 0.06% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $10,547K ÷ ($—K + $411,448K)
= 2.56%
The return on total capital for Enviri Corporation has varied significantly over the past five years. In December 2020, the return on total capital was very low at 0.06%, indicating that the company was not efficiently utilizing its total capital to generate returns for its investors.
However, by the end of December 2021, the return on total capital showed a substantial improvement, rising to 13.00%. This significant increase suggests that the company made better use of its total capital during that year, resulting in a higher return for its investors.
In December 2022, the return on total capital sharply declined to -8.81%, indicating that the company experienced a negative return on its total capital during that period. This could be a signal of operational challenges or inefficient capital allocation decisions.
By December 2023, Enviri Corporation managed to rebound strongly, achieving a return on total capital of 18.86%. This sharp increase suggests that the company implemented effective strategies to boost its return on total capital, potentially through improved operational efficiency or strategic investments.
Lastly, in December 2024, the return on total capital decreased to 2.56%. While still positive, this figure is lower compared to the peak in 2023, indicating that the company may have faced some challenges in maintaining the high return levels seen in the previous year.
Overall, Enviri Corporation's return on total capital has shown fluctuations over the years, highlighting the importance of consistently monitoring and optimizing the company's capital allocation and operational efficiency to maximize returns for its stakeholders.