Sealed Air Corporation (SEE)
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 | 746,400 | 712,900 | 962,400 | 874,100 | 817,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 624,500 | 549,500 | 344,100 | 248,700 | 172,500 |
| Return on total capital | 119.52% | 129.74% | 279.69% | 351.47% | 473.74% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $746,400K ÷ ($—K + $624,500K)
= 119.52%
Based on the provided data for Sealed Air Corporation's return on total capital over the years, there has been a notable fluctuation in the performance of the company in terms of generating returns relative to its total capital employed.
In December 31, 2020, the return on total capital stood impressively high at 473.74%, indicating that for every dollar of total capital invested, the company generated a return of $4.74. This exceptionally high figure suggests efficient utilization of capital to drive profitability.
Subsequently, by December 31, 2021, the return on total capital declined to 351.47%, still reflecting a strong performance but with a decrease compared to the previous year. The downward trend continued in the following years, with returns of 279.69% in 2022, 129.74% in 2023, and 119.52% in 2024.
The decline in return on total capital over the years may indicate challenges in sustaining or growing profitability relative to the capital employed by the company. It is essential for Sealed Air Corporation to assess the reasons behind this declining trend, such as changes in business operations, market conditions, or investments, and formulate strategies to improve capital efficiency and maintain healthy returns in the future.
Peer comparison
Dec 31, 2024