Oceaneering International Inc (OII)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 246,270 215,840 202,436 191,271 181,328 176,055 165,001 138,652 110,863 56,114 25,008 24,977 39,799 52,851 -23,538 -51,539 -446,079 -700,729 -645,303 -649,756
Long-term debt US$ in thousands 482,009 480,706 479,378 478,173 477,058 568,471 700,404 700,695 700,973 701,258 701,539 701,808 702,067 739,980 773,423 804,888 805,251 805,631 806,006 806,396
Total stockholders’ equity US$ in thousands 714,259 697,978 651,032 623,080 628,020 566,272 545,419 520,243 519,741 471,235 470,665 495,992 504,961 543,034 556,669 542,282 552,094 553,356 619,346 630,596
Return on total capital 20.59% 18.31% 17.91% 17.37% 16.41% 15.51% 13.24% 11.36% 9.08% 4.79% 2.13% 2.09% 3.30% 4.12% -1.77% -3.83% -32.86% -51.56% -45.27% -45.22%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $246,270K ÷ ($482,009K + $714,259K)
= 20.59%

Return on total capital is a crucial financial metric that indicates the efficiency and profitability of a company in generating returns from its total invested capital. Looking at the data provided for Oceaneering International Inc, the return on total capital exhibited a declining trend from March 31, 2020, to December 31, 2021, with negative values ranging from -45.22% to -3.83%. This negative trend suggests that the company was struggling to generate adequate returns compared to the total capital employed during this period.

However, starting from March 31, 2022, there was a noticeable improvement in the return on total capital, shifting from negative values to positive ones. The company's return on total capital gradually increased, reaching 20.59% by December 31, 2024. This upward trend signifies an enhancement of the company's efficiency in utilizing its total capital to generate returns for its investors.

Overall, the progression from negative returns to positive returns indicates a positive shift in Oceaneering International Inc's financial performance, reflecting improved capital utilization and profitability over the analyzed period. Investors and stakeholders may view this as a positive development, signaling the company's ability to create value and generate returns on its invested capital.