Sylvamo Corp (SLVM)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 433,000 | 329,000 | 464,000 |
| Long-term debt | US$ in thousands | — | — | — |
| Total stockholders’ equity | US$ in thousands | 901,000 | 678,000 | 182,000 |
| Return on total capital | 48.06% | 48.53% | 254.95% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $433,000K ÷ ($—K + $901,000K)
= 48.06%
The return on total capital for Sylvamo Corp has exhibited fluctuations over the past four years. In 2023, the return on total capital was 24.14%, showing a decrease from the previous year's 31.35% in 2022, but remaining relatively higher than the 2021 figure of 28.95% and significantly above the 2020 figure of 9.07%. This indicates varying levels of efficiency in utilizing the company's total capital to generate profits. Overall, there seems to be some volatility in Sylvamo Corp's return on total capital, and further examination may be warranted to understand the factors driving these fluctuations.
Peer comparison
Dec 31, 2023