Packaging Corp of America (PKG)
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 | 1,113,300 | 1,069,600 | 998,100 | 995,900 | 1,067,500 | 1,099,600 | 1,206,700 | 1,343,700 | 1,435,100 | 1,504,100 | 1,498,000 | 1,378,200 | 1,261,200 | 1,090,300 | 942,600 | 759,700 | 733,500 | 776,800 | 837,100 | 1,003,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,404,000 | 4,263,600 | 4,126,600 | 4,031,000 | 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 |
| Return on total capital | 25.28% | 25.09% | 24.19% | 24.71% | 26.71% | 28.29% | 31.35% | 35.76% | 39.13% | 37.88% | 37.79% | 36.47% | 34.96% | 30.22% | 27.37% | 22.81% | 22.59% | 24.23% | 26.72% | 31.85% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,113,300K ÷ ($—K + $4,404,000K)
= 25.28%
Packaging Corp of America's return on total capital has shown a fluctuating trend over the years based on the provided data. The company's return on total capital was notably high at 31.85% as of March 31, 2020, indicating efficient utilization of both debt and equity capital to generate profits. The return on total capital gradually decreased to 22.59% by December 31, 2020, before starting to rebound in the following periods.
Throughout 2021, the return on total capital demonstrated a positive trajectory, reaching a peak of 39.13% by December 31, 2022. This significant increase suggests improved profitability and effective capital management within the organization during this period. However, the return on total capital slightly declined in the subsequent quarters of 2023, dropping to 26.71% by December 31, 2023.
In the last reported periods of 2024, Packaging Corp of America's return on total capital remained relatively stable, ranging between 24.19% and 25.28%. This stability indicates a consistent performance in terms of generating returns from invested capital, albeit at slightly lower levels compared to the peak in 2022.
Overall, the analysis of return on total capital for Packaging Corp of America reflects a mixed performance with fluctuations across different quarters. It is essential for the company to continue monitoring and optimizing its capital allocation strategies to sustain and potentially enhance its return on total capital in the future.
Peer comparison
Dec 31, 2024