Post Holdings Inc (POST)
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 | 692,300 | 680,100 | 706,900 | 798,600 | 1,293,400 | 1,160,100 | 1,069,600 | 836,400 | 426,800 | 578,600 | 558,600 | 648,400 | 281,900 | 313,400 | 212,700 | 184,500 | 446,900 | 443,200 | 551,900 | 653,500 |
| Long-term debt | US$ in thousands | 6,314,000 | 6,039,000 | 6,186,100 | 5,837,100 | 5,886,800 | 5,956,600 | 6,032,400 | 6,105,900 | 7,429,000 | 6,441,600 | 6,932,100 | 6,981,000 | 6,972,100 | 6,959,000 | 6,776,900 | 7,171,300 | 6,382,600 | 7,066,000 | 6,324,500 | 6,326,200 |
| Total stockholders’ equity | US$ in thousands | 3,944,000 | 3,842,100 | 3,950,000 | 3,473,000 | 3,428,300 | 3,254,000 | 3,395,000 | 3,476,500 | 2,566,100 | 2,742,400 | 2,833,900 | 2,901,200 | 2,920,700 | 2,854,500 | 2,916,300 | 2,907,100 | 3,357,800 | 2,925,900 | 3,206,100 | 3,233,900 |
| Return on total capital | 6.75% | 6.88% | 6.97% | 8.58% | 13.88% | 12.60% | 11.35% | 8.73% | 4.27% | 6.30% | 5.72% | 6.56% | 2.85% | 3.19% | 2.19% | 1.83% | 4.59% | 4.44% | 5.79% | 6.84% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $692,300K ÷ ($6,314,000K + $3,944,000K)
= 6.75%
The Return on Total Capital for Post Holdings Inc has shown a generally increasing trend over the last eight quarters, with values ranging from 3.76% in Q4 2022 to 6.82% in Q1 2024. This indicates that the company has been able to generate a higher return relative to its total capital employed in the business operations. The upward trajectory in the return on total capital suggests an improvement in the efficiency and effectiveness of Post Holdings Inc in utilizing its capital resources to generate profits. It reflects positively on the company's ability to generate returns for both equity and debt providers. The consistent improvement in this ratio indicates that Post Holdings Inc is efficiently deploying its capital to drive profitability and create shareholder value. Investors and stakeholders may view this as a positive sign of the company's financial health and operational performance.
Peer comparison
Dec 31, 2023