Rogers Corporation (ROG)
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 | 85,300 | 144,432 | 117,182 | 67,334 | 110,481 |
| Long-term debt | US$ in thousands | 30,000 | 215,000 | 190,000 | 25,000 | 123,000 |
| Total stockholders’ equity | US$ in thousands | 1,259,000 | 1,172,500 | 1,118,900 | 1,020,760 | 933,900 |
| Return on total capital | 6.62% | 10.41% | 8.95% | 6.44% | 10.45% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $85,300K ÷ ($30,000K + $1,259,000K)
= 6.62%
Rogers Corp.'s return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 5.43%, which represents a slight increase from the previous year's figure of 4.85%. However, this is significantly lower compared to the returns achieved in 2021 and 2019, which were 9.72% and 11.10%, respectively. The return on total capital in 2020 was 8.14%.
The downward trend in return on total capital from 2019 to 2023 may indicate that Rogers Corp. is facing challenges in generating returns on its total invested capital. Management may need to focus on improving operational efficiency, optimizing capital allocation, or exploring new growth opportunities to enhance the return on total capital in the future.
Peer comparison
Dec 31, 2023