Ryder System Inc (R)
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 | 914,000 | 1,448,000 | 904,000 | 121,000 | 197,972 |
| Long-term debt | US$ in thousands | — | — | — | — | 227,000 |
| Total stockholders’ equity | US$ in thousands | 3,069,000 | 2,937,000 | 2,798,000 | 2,256,000 | 2,476,000 |
| Return on total capital | 29.78% | 49.30% | 32.31% | 5.36% | 7.32% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $914,000K ÷ ($—K + $3,069,000K)
= 29.78%
Ryder System, Inc.'s return on total capital has exhibited varying levels over the past five years. The ratio stood at 10.55% at the end of 2023, showing a decrease from 15.34% in 2022. Despite this drop, the company's return on total capital remained higher compared to the figures reported in 2021 (9.30%), 2020 (2.60%), and 2019 (3.84%). This suggests that Ryder System, Inc. has been able to generate a reasonable return on the capital invested in the business, with the recent performance indicating a somewhat mixed trend. The decreasing trend from 2022 to 2023 could prompt further analysis to identify the underlying factors driving this change and assess the company's strategies for optimizing capital utilization.
Peer comparison
Dec 31, 2023