Tidewater Inc (TDW)

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 182,215 26,708 -95,016 -186,802 -86,604
Long-term debt US$ in thousands 631,361 169,036 167,885 164,934 279,044
Total stockholders’ equity US$ in thousands 1,039,240 865,968 701,303 822,115 1,014,800
Return on total capital 10.91% 2.58% -10.93% -18.93% -6.69%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $182,215K ÷ ($631,361K + $1,039,240K)
= 10.91%

Tidewater Inc's return on total capital has shown a varying trend over the past five years. In 2023, the return on total capital improved significantly to 10.91%, indicating the company was able to generate a higher return relative to its total capital employed. This is a positive sign of improved efficiency and profitability.

In contrast, 2022 saw a lower return on total capital of 2.58% compared to the previous year. This may suggest that the company faced challenges in utilizing its total capital effectively to generate profits during that period.

The return on total capital was negative in 2021, 2020, and 2019, indicating that the company's capital was not effectively utilized to generate profits during those years. Particularly in 2020, the return on total capital was significantly low at -18.93%, indicating a substantial loss relative to the capital employed.

Overall, Tidewater Inc's return on total capital has shown a mix of positive and negative performance over the years, highlighting the importance of efficient capital utilization in driving profitability for the company.


Peer comparison

Dec 31, 2023