Packaging Corp of America (PKG)

Return on total capital

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 1,075,200 1,101,700 1,203,400 1,334,800 1,420,600 1,488,300 1,480,800 1,359,600 1,241,400 1,075,000 931,700 753,200 724,000 769,800 823,100 987,400 1,053,700 1,105,300 1,141,000 1,130,200
Long-term debt US$ in thousands 2,472,200 2,075,700 2,474,700 2,474,100 2,473,600 2,473,100 2,472,600 2,472,000 2,471,500 2,471,100 2,479,800 2,480,000 2,479,400 2,478,700 2,478,000 2,477,400 2,476,800 2,486,300 2,485,400 2,484,600
Total stockholders’ equity US$ in thousands 3,997,300 3,887,200 3,848,600 3,757,700 3,667,100 3,971,200 3,964,500 3,779,300 3,607,200 3,608,300 3,444,300 3,331,200 3,246,300 3,205,400 3,133,100 3,149,900 3,071,000 3,034,700 2,921,200 2,794,600
Return on total capital 16.62% 18.48% 19.03% 21.42% 23.13% 23.09% 23.00% 21.75% 20.42% 17.68% 15.73% 12.96% 12.64% 13.54% 14.67% 17.55% 18.99% 20.02% 21.10% 21.41%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,075,200K ÷ ($2,472,200K + $3,997,300K)
= 16.62%

Packaging Corp Of America's return on total capital has shown a declining trend over the past four quarters. In Q4 2022, the return on total capital was at its highest at 24.08%, but it gradually decreased to 16.25% in Q4 2023. This downward trend indicates a decrease in the company's ability to generate profits from its total invested capital. It is important for the company to assess the factors contributing to this decline and take necessary steps to improve its return on total capital in order to maintain profitability and sustainable growth.


Peer comparison

Dec 31, 2023