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.