PPG Industries Inc (PPG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,956,000 | 1,518,000 | 1,934,000 | 1,488,000 | 1,767,000 |
| Long-term debt | US$ in thousands | 5,748,000 | 6,503,000 | 6,572,000 | 5,171,000 | 4,539,000 |
| Total stockholders’ equity | US$ in thousands | 7,832,000 | 6,592,000 | 6,286,000 | 5,689,000 | 5,284,000 |
| Return on total capital | 14.40% | 11.59% | 15.04% | 13.70% | 17.99% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,956,000K ÷ ($5,748,000K + $7,832,000K)
= 14.40%
PPG Industries' return on total capital has shown fluctuations over the past five years. The trend indicates a decrease from 2019 to 2020, followed by a slight increase in 2021. In 2022, there was a notable rise in return on total capital to 13.01%, which further improved in 2023 to 16.70%. The company's return on total capital remains positive, but it is important to monitor this metric over time to assess the company's efficiency in generating returns from its capital investments.
Peer comparison
Dec 31, 2023
Company name
Symbol
Return on total capital
PPG Industries Inc
PPG
14.40%
Axalta Coating Systems Ltd
AXTA
10.89%
RPM International Inc
RPM
36.03%