ODP Corp (ODP)
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 | 169,000 | 220,000 | 258,000 | 259,000 | 4,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 807,000 | 1,101,000 | 1,287,000 | 1,438,000 | 1,880,000 |
| Return on total capital | 20.94% | 19.98% | 20.05% | 18.01% | 0.21% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $169,000K ÷ ($—K + $807,000K)
= 20.94%
The return on total capital for ODP Corp has exhibited a substantial improvement over the years. Starting at a modest 0.21% on December 31, 2020, the company saw a significant surge in performance with a return of 18.01% by the end of December 31, 2021. This positive trend continued as the return on total capital rose to 20.05% by December 31, 2022, indicating a strong ability to generate profits relative to the total capital invested. The metric slightly dipped to 19.98% by the end of December 31, 2023, but quickly recovered and reached a peak of 20.94% by December 31, 2024. Overall, the consistent increase in the return on total capital showcases ODP Corp's efficiency in utilizing its total capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024