PulteGroup Inc (PHM)
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 | 4,006,360 | 3,449,740 | 3,439,840 | 2,510,350 | 1,732,940 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 12,122,000 | 10,383,300 | 8,914,100 | 7,489,520 | 6,569,990 |
| Return on total capital | 33.05% | 33.22% | 38.59% | 33.52% | 26.38% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,006,360K ÷ ($—K + $12,122,000K)
= 33.05%
PulteGroup Inc's return on total capital has shown a positive trend over the past five years. It increased from 26.38% as of December 31, 2020, to 33.05% as of December 31, 2024. This indicates that the company has been effectively utilizing its total capital to generate returns for its shareholders. The highest return on total capital was recorded as 38.59% as of December 31, 2022, showcasing a strong performance in capital allocation and overall efficiency.
The consistent improvement in return on total capital reflects positively on PulteGroup Inc's management decisions and operational performance during this period. It suggests that the company has been successful in generating profits relative to the total capital employed in its operations. Investors and stakeholders may view this trend favorably as it indicates the company's ability to generate value from its capital investments.
Peer comparison
Dec 31, 2024