Silgan Holdings Inc (SLGN)
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 | 514,039 | 122,000 | 701,246 | 596,081 | 550,917 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,989,580 | 1,889,360 | 1,718,300 | 1,562,700 | 1,252,900 |
| Return on total capital | 25.84% | 6.46% | 40.81% | 38.14% | 43.97% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $514,039K ÷ ($—K + $1,989,580K)
= 25.84%
Silgan Holdings Inc's return on total capital has displayed fluctuations over the years. In 2020, the return on total capital stood at an impressive 43.97%, indicating the company generated significant profits relative to its total capital employed. Subsequently, in 2021 and 2022, the return on total capital remained relatively strong at 38.14% and 40.81% respectively, suggesting continued efficiency in capital utilization.
However, there was a significant decline in the return on total capital in 2023, dropping to 6.46%. This sharp decrease may indicate challenges in generating profits compared to the capital invested during that period. Nevertheless, there was a partial recovery in 2024, with the return on total capital improving to 25.84%.
Overall, Silgan Holdings Inc's return on total capital has experienced fluctuations, reflecting varying levels of profitability relative to total capital employed in different years. Investors and stakeholders should closely monitor these metrics to assess the company's financial performance and capital efficiency over time.
Peer comparison
Dec 31, 2024