Smurfit WestRock plc (SW)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,423,000 | 1,596,000 | 1,072,000 | 920,000 |
| Long-term debt | US$ in thousands | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,560,000 | 5,025,000 | 4,379,000 | 3,770,000 |
| Return on total capital | 25.59% | 31.76% | 24.48% | 24.40% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,423,000K ÷ ($—K + $5,560,000K)
= 25.59%
Smurfit WestRock plc's return on total capital has shown fluctuations over the past four years. In 2023, the return on total capital was 25.59%, slightly lower than the previous year's figure of 31.76%. However, it remained higher compared to the figures from 2021 and 2020, which were 24.48% and 24.40% respectively.
The decline in 2023 could indicate potential challenges in efficiently utilizing capital to generate returns. Further analysis would be required to understand the factors contributing to this trend and to identify opportunities for improvement in capital allocation and operational efficiency.
Peer comparison
Dec 31, 2023