PPG Industries Inc (PPG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,093,000 | 1,997,000 | 1,813,000 | 1,964,000 | 1,528,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,785,000 | 7,832,000 | 6,592,000 | 6,286,000 | 5,689,000 |
| Return on total capital | 30.85% | 25.50% | 27.50% | 31.24% | 26.86% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,093,000K ÷ ($—K + $6,785,000K)
= 30.85%
The return on total capital for PPG Industries Inc has displayed variability over the past five years. Starting at 26.86% on December 31, 2020, it increased to 31.24% by December 31, 2021. Although there was a slight decrease in 2022 to 27.50%, the return remained relatively high. It then decreased further to 25.50% by the end of 2023, before recovering to 30.85% as of December 31, 2024. Overall, the company has generally maintained a strong return on total capital, indicating efficient use of capital to generate profits during the period under review.
Peer comparison
Dec 31, 2024