Republic Services Inc (RSG)
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 | 2,971,000 | 2,721,200 | 2,218,300 | 2,116,600 | 1,841,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 11,405,000 | 10,542,300 | 9,686,000 | 8,978,900 | 8,483,900 |
| Return on total capital | 26.05% | 25.81% | 22.90% | 23.57% | 21.70% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,971,000K ÷ ($—K + $11,405,000K)
= 26.05%
Republic Services Inc has shown a consistent improvement in its return on total capital over the past five years. The return on total capital increased from 21.70% in December 2020 to 26.05% in December 2024. This upward trend indicates that the company has been effectively utilizing its total capital to generate returns for its stakeholders. The average return on total capital over this period was 23.61%, highlighting the company's ability to efficiently allocate its resources and generate profits. Overall, Republic Services Inc's strong performance in terms of return on total capital suggests a sound financial strategy and effective management of its capital structure.
Peer comparison
Dec 31, 2024