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