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