Oceaneering International Inc (OII)
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 | 181,328 | 110,863 | 39,799 | -446,079 | -290,713 |
Long-term debt | US$ in thousands | 477,058 | 700,973 | 702,067 | 805,251 | 796,516 |
Total stockholders’ equity | US$ in thousands | 628,020 | 519,741 | 504,961 | 552,094 | 1,069,350 |
Return on total capital | 16.41% | 9.08% | 3.30% | -32.86% | -15.58% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $181,328K ÷ ($477,058K + $628,020K)
= 16.41%
Oceaneering International, Inc.'s return on total capital has shown an improving trend over the past five years. In 2023, the return on total capital increased to 16.60%, a significant improvement from 9.22% in 2022 and 3.35% in 2021. This indicates that the company has become more efficient in generating profits from its total capital.
The negative returns in 2020 (-2.17%) and 2019 (-6.18%) suggest that Oceaneering International, Inc. faced challenges in those years, potentially due to economic conditions or internal factors impacting its profitability. However, the subsequent recovery and growth in return on total capital demonstrate the company's ability to adapt and improve its financial performance.
Overall, the increasing trend in return on total capital for Oceaneering International, Inc. implies that the company has been making better use of its capital resources to generate profits for its shareholders. This positive trajectory reflects improving efficiency and effectiveness in its operations and investments.
Peer comparison
Dec 31, 2023