Smurfit WestRock plc (SW)
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 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -255,212 | 237,214 | 434,931 | 1,551,261 | 2,382,119 | 2,805,029 | 3,247,508 | 3,014,999 | 2,741,238 | 2,319,360 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 17,360,000 | 17,965,000 | 13 | 0 | 5,560,000 | — | 5,357,000 | 5,025,000 | — | — |
| Return on total capital | -1.47% | 1.32% | 3,345,623.08% | — | 42.84% | — | 60.62% | 60.00% | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-255,212K ÷ ($—K + $17,360,000K)
= -1.47%
Smurfit WestRock plc's return on total capital has shown significant fluctuations over the analyzed periods. It was not determinable as of December 31, 2021 and June 30, 2022. The return on total capital increased substantially to 60.00% as of December 31, 2022, and continued to rise to 60.62% by June 30, 2023. However, this metric was not available as of September 30, 2023.
There was a notable decline in the return on total capital to 42.84% by December 31, 2023. This trend worsened significantly as of June 30, 2024, with an unusually high return on total capital of 3,345,623.08%. Subsequently, the return on total capital dropped to 1.32% by September 30, 2024, and further declined to -1.47% by December 31, 2024.
The sharp fluctuations in the return on total capital reflect potential issues with the capital allocation efficiency and profitability of the company during the analyzed periods. It is advisable for stakeholders to closely monitor and assess the underlying factors contributing to these extreme fluctuations to ensure the company's long-term financial sustainability.
Peer comparison
Dec 31, 2024