Republic Services Inc (RSG)
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 | 2,699,300 | 2,227,090 | 1,887,800 | 1,495,900 | 1,687,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,542,300 | 9,686,000 | 8,978,900 | 8,483,900 | 8,118,200 |
| Return on total capital | 25.60% | 22.99% | 21.02% | 17.63% | 20.78% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,699,300K ÷ ($—K + $10,542,300K)
= 25.60%
Republic Services, Inc.'s return on total capital has shown a positive trend over the past five years, with an increase from 9.96% in 2019 to 11.64% in 2023. This indicates that the company has been effectively generating returns on the total capital invested in its operations. The consistently improving performance in this ratio suggests that Republic Services, Inc. is efficiently utilizing its total capital to generate profits for its stakeholders. This trend is a positive signal to investors and creditors, indicating the company's ability to generate value from its capital investments.
Peer comparison
Dec 31, 2023