Sylvamo Corp (SLVM)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 433,000 | 500,000 | 510,000 | 419,000 | 329,000 | 289,000 | 296,000 | |||
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 901,000 | 836,000 | 862,000 | 790,000 | 678,000 | 258,000 | 252,000 | 331,000 | 182,000 | 265,000 |
| Return on total capital | 48.06% | 59.81% | 59.16% | 53.04% | 48.53% | 112.02% | 117.46% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $433,000K ÷ ($—K + $901,000K)
= 48.06%
The return on total capital for Sylvamo Corp has shown a declining trend over the five quarters presented. The ratio decreased from 31.35% in Q4 2022 to 24.14% in Q4 2023, indicating a decrease in the company's ability to generate returns from its total capital employed. The decrease in return on total capital may suggest potential inefficiencies in the utilization of the company's total capital or a decrease in profitability relative to the capital invested. Further analysis and investigation into the factors contributing to this decline would be necessary to determine the underlying reasons for the decrease in the return on total capital.
Peer comparison
Dec 31, 2023