Molson Coors Brewing Co Class B (TAP)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,479,000 | 199,300 | 1,496,500 | -372,600 | 756,300 |
| Long-term debt | US$ in thousands | 5,312,100 | 6,165,200 | 6,647,200 | 7,208,200 | 8,109,500 |
| Total stockholders’ equity | US$ in thousands | 13,196,000 | 12,689,700 | 13,417,100 | 12,365,000 | 13,419,400 |
| Return on total capital | 7.99% | 1.06% | 7.46% | -1.90% | 3.51% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,479,000K ÷ ($5,312,100K + $13,196,000K)
= 7.99%
Molson Coors Beverage Company's return on total capital has shown fluctuating trends over the past five years. In 2023, the return on total capital improved to 7.41%, marking a significant increase from the previous year's 5.41%. This improvement suggests that the company has been more efficient in generating profits relative to the total capital employed.
Comparing to 2021 where the return on total capital was 7.28%, the latest figure indicates a slight increase, showcasing ongoing efforts to optimize capital utilization. However, it should be noted that the return on total capital in 2023 remains below the levels seen in 2019 and 2020, where it stood at 6.56% and 6.46% respectively.
Overall, Molson Coors Beverage Company's return on total capital in 2023 reflects a positive trend, with efforts seemingly paying off in terms of capital efficiency. Monitoring this ratio over time can provide insights into the company's ability to generate returns for its stakeholders while effectively utilizing its total capital.
Peer comparison
Dec 31, 2023