PBF Energy Inc (PBF)

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	2,928,100	3,707,600	560,600	-1,132,100	583,300
Long-term debt	US$ in thousands	1,245,900	1,434,900	4,295,800	4,653,600	2,064,900
Total stockholders’ equity	US$ in thousands	6,488,300	4,929,200	1,926,200	1,642,800	3,039,600
Return on total capital		37.86%	58.26%	9.01%	-17.98%	11.43%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,928,100K ÷ ($1,245,900K + $6,488,300K)
= 37.86%

The return on total capital for PBF Energy Inc has displayed significant fluctuations over the past five years.

In 2023, the return on total capital was 25.40%, indicating that the company generated a return of 25.40% on its total capital employed during the year. This suggests that the company efficiently utilized its capital to generate profits.

In 2022, the return on total capital notably increased to 60.40%, reflecting a substantial improvement in the company's capital efficiency compared to the previous year. This sharp increase indicates that the company was able to generate significantly higher profits relative to its total capital base.

In 2021, the return on total capital dropped to 9.94%, suggesting a decline in capital efficiency compared to the previous year. Despite the decrease, the company was still able to generate positive returns on its capital.

In 2020, the return on total capital was negative at -29.59%, indicating that the company incurred losses relative to its total capital base during the year. This suggests that the company faced challenges in effectively utilizing its capital to generate profits.

In 2019, the return on total capital improved to 12.05%, signifying a recovery in capital efficiency compared to the previous year. The increase indicates that the company was able to generate a positive return on its total capital.

Overall, the return on total capital for PBF Energy Inc has shown fluctuations, with some years demonstrating strong capital efficiency and positive returns, while others indicating challenges and even losses in capital utilization. The company's ability to effectively manage its capital and generate returns will be crucial for its financial performance and long-term sustainability.