Ryder System Inc (R)
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 | 1,047,000 | 914,000 | 1,448,000 | 904,000 | 121,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,117,000 | 3,069,000 | 2,937,000 | 2,798,000 | 2,256,000 |
| Return on total capital | 33.59% | 29.78% | 49.30% | 32.31% | 5.36% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,047,000K ÷ ($—K + $3,117,000K)
= 33.59%
The return on total capital for Ryder System Inc has shown a significant improvement over the past five years, indicating a positive trend in the company's capital utilization efficiency.
In December 31, 2020, the return on total capital was relatively low at 5.36%. However, there was a sharp increase in performance in the subsequent years, with returns reaching 32.31% in December 31, 2021, 49.30% in December 31, 2022 and 33.59% in December 31, 2024.
Although there was a slight decrease in the return on total capital to 29.78% by December 31, 2023, the overall trend demonstrates an improvement in the company's ability to generate returns from its total capital. This indicates effective capital allocation and management strategies implemented by Ryder System Inc during the period under review.
The company's ability to consistently improve its return on total capital is a positive sign of operational efficiency and financial performance, reflecting well on its management's efforts to maximize returns for shareholders.
Peer comparison
Dec 31, 2024