Silgan Holdings Inc (SLGN)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 595,436 | 550,455 | 575,774 | 589,798 | 600,481 | 647,542 | 596,049 | 590,986 | 574,741 | 551,515 | 557,631 | 535,911 | 510,905 | 477,378 | 434,364 | 371,729 | 357,811 | 363,706 | 371,142 | 404,167 |
| Long-term debt | US$ in thousands | 2,546,450 | 3,312,680 | 3,351,180 | 3,370,350 | 3,345,380 | 3,246,740 | 3,367,470 | 3,445,630 | 3,772,930 | 3,191,580 | 3,176,390 | 3,163,290 | 3,223,220 | 3,163,300 | 3,106,420 | 2,174,570 | 2,214,610 | 1,809,960 | 1,824,530 | 2,113,580 |
| Total stockholders’ equity | US$ in thousands | 1,889,360 | 1,781,890 | 1,871,140 | 1,781,290 | 1,718,260 | 1,693,230 | 1,625,460 | 1,638,240 | 1,562,700 | 1,456,710 | 1,388,580 | 1,276,360 | 1,252,870 | 1,218,860 | 1,089,690 | 1,020,580 | 1,023,320 | 968,530 | 929,902 | 900,207 |
| Return on total capital | 13.42% | 10.80% | 11.03% | 11.45% | 11.86% | 13.11% | 11.94% | 11.62% | 10.77% | 11.86% | 12.22% | 12.07% | 11.41% | 10.89% | 10.35% | 11.63% | 11.05% | 13.09% | 13.47% | 13.41% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $595,436K ÷ ($2,546,450K + $1,889,360K)
= 13.42%
Silgan Holdings Inc. has maintained a relatively stable return on total capital over the past eight quarters, ranging from 9.78% to 12.26%. The return on total capital measures the efficiency of the company in generating profits from its total capital employed, which includes both equity and debt.
The trend shows some fluctuations, with a peak in Q4 2022 at 12.26% followed by a slight decline in subsequent quarters. However, the return on total capital in Q4 2023 rebounded to 11.44%, indicating an improved performance compared to the previous quarter. This could suggest that the company is effectively utilizing its capital to generate returns for its investors.
Overall, the return on total capital for Silgan Holdings Inc. remains relatively healthy and indicates the company's ability to generate profits from its invested capital over the analyzed period.
Peer comparison
Dec 31, 2023