Sylvamo Corp (SLVM)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 458,000 419,000 373,000 333,000 412,000 476,000 542,000 594,000 650,000 633,000 597,000 574,000 454,000 392,000 323,000 245,000 194,000
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 847,000 937,000 830,000 889,000 901,000 836,000 862,000 790,000 678,000 258,000 252,000 331,000 182,000 265,000 2,284,000 2,112,000 2,112,000
Return on total capital 54.07% 44.72% 44.94% 37.46% 45.73% 56.94% 62.88% 75.19% 95.87% 245.35% 236.90% 173.41% 249.45% 147.92% 14.14% 11.60% 9.19%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (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 periods provided. The ratio started at 9.19% on December 31, 2020, and experienced fluctuations, reaching its peak at 249.45% on December 31, 2021. This indicates a substantial increase in the company's ability to generate profits relative to the total capital employed.

Subsequently, the return on total capital decreased to 37.46% on March 31, 2024 but rebounded to 54.07% by December 31, 2024. Although there were fluctuations, the company generally maintained a healthy return on total capital during the analyzed periods.

These variations in return on total capital may indicate shifts in the company's profitability and efficiency in utilizing its total capital to generate returns. It would be important for stakeholders to further investigate the reasons behind these fluctuations to better understand the company's financial performance and prospects.


Peer comparison

Dec 31, 2024

Company name
Symbol
Return on total capital
Sylvamo Corp
SLVM
54.07%
International Paper
IP
7.06%
Mativ Holdings Inc.
MATV
2.02%