Sylvamo Corp (SLVM)
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 | 458,000 | 433,000 | 539,000 | 359,000 | 198,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 847,000 | 901,000 | 678,000 | 182,000 | 2,112,000 |
| Return on total capital | 54.07% | 48.06% | 79.50% | 197.25% | 9.38% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $458,000K ÷ ($—K + $847,000K)
= 54.07%
Sylvamo Corp's return on total capital has shown significant fluctuations over the past years. The return on total capital was 9.38% as of December 31, 2020, indicating a moderate performance. This ratio sharply increased to 197.25% by December 31, 2021, suggesting a substantial improvement in the company's ability to generate profits relative to its total capital employed.
In the following years, the return on total capital remained comparatively high at 79.50% as of December 31, 2022, 48.06% as of December 31, 2023, and 54.07% as of December 31, 2024. Despite some fluctuations, Sylvamo Corp has generally maintained a healthy return on total capital during this period, signaling efficient capital utilization and value creation for investors.
Overall, the trend in Sylvamo Corp's return on total capital highlights the company's ability to generate favorable returns on the capital invested, which is crucial for assessing the company's financial performance and efficiency in utilizing its resources.
Peer comparison
Dec 31, 2024