Enviri Corporation (NVRI)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 45,927 | 56,169 | 67,362 | -49,256 | -94,508 | -98,740 | -98,849 | 26,996 | 69,014 | 87,911 | 61,284 | 29,502 | 23,077 | 62,348 | 518,625 | 535,315 | 550,671 | 546,235 | 134,985 | 161,914 |
| Long-term debt | US$ in thousands | 1,401,440 | 1,400,430 | 1,382,140 | 1,346,210 | 1,337,000 | 1,314,920 | 1,302,860 | 1,422,380 | 1,359,450 | 1,333,570 | 1,327,590 | 1,334,320 | 1,271,190 | 1,246,400 | 1,242,320 | 789,619 | 775,498 | 764,254 | 1,313,840 | 642,375 |
| Total stockholders’ equity | US$ in thousands | 523,151 | 563,721 | 577,492 | 569,457 | 569,442 | 574,518 | 593,324 | 722,808 | 748,160 | 695,536 | 693,503 | 659,974 | 657,154 | 714,292 | 715,179 | 710,853 | 741,580 | 705,740 | 300,716 | 287,023 |
| Return on total capital | 2.39% | 2.86% | 3.44% | -2.57% | -4.96% | -5.23% | -5.21% | 1.26% | 3.27% | 4.33% | 3.03% | 1.48% | 1.20% | 3.18% | 26.49% | 35.68% | 36.30% | 37.16% | 8.36% | 17.42% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $45,927K ÷ ($1,401,440K + $523,151K)
= 2.39%
Enviri Corp's return on total capital has shown a positive trend over the past eight quarters, indicating an improving efficiency in generating returns from its total capital. The return on total capital has steadily increased from 3.09% in Q1 2022 to 6.20% in Q4 2023. This upward trend suggests that the company has been effectively utilizing its capital to generate profits for its stakeholders.
The consistent growth in return on total capital signifies that Enviri Corp has been successful in maximizing its profitability relative to the total capital employed in its operations. This trend reflects well on the company's management efficiency and operational effectiveness, as higher returns on total capital indicate better utilization of financial resources to drive earnings growth.
Overall, Enviri Corp's improving return on total capital trend indicates a positive financial performance and suggests that the company is likely making sound investment decisions and effectively managing its capital structure to enhance shareholder value.