Tidewater Inc (TDW)
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 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 302,455 | 301,102 | 278,703 | 239,715 | 187,401 | 135,235 | 96,791 | 44,737 | 14,882 | -39,045 | -76,537 | -82,103 | -108,202 | -98,413 | -100,507 | -177,565 | -166,141 | -182,605 | -181,113 | -88,278 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,114,110 | 1,116,480 | 1,081,250 | 1,056,980 | 1,039,240 | 1,032,730 | 893,083 | 873,313 | 865,968 | 846,639 | 840,717 | 689,379 | 701,303 | 734,001 | 758,978 | 787,766 | 822,115 | 852,240 | 888,509 | 997,364 |
| Return on total capital | 27.15% | 26.97% | 25.78% | 22.68% | 18.03% | 13.09% | 10.84% | 5.12% | 1.72% | -4.61% | -9.10% | -11.91% | -15.43% | -13.41% | -13.24% | -22.54% | -20.21% | -21.43% | -20.38% | -8.85% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $302,455K ÷ ($—K + $1,114,110K)
= 27.15%
Tidewater Inc's return on total capital has shown a fluctuating trend over the past few years. The company experienced negative returns on total capital for most of the quarters from March 31, 2020, to June 30, 2022, with figures ranging from -8.85% to -22.54%. This suggests that during this period, Tidewater Inc was not generating sufficient profits relative to the capital invested in the business.
However, there was a notable improvement in the company's performance starting from the quarter ending December 31, 2022, where the return on total capital turned positive at 1.72%. Subsequently, Tidewater Inc's return on total capital continued to increase steadily, reaching 27.15% by the quarter ending December 31, 2024.
This positive trend in return on total capital indicates that Tidewater Inc has been able to generate more profits for each unit of capital employed in the business. It suggests that the company's financial performance and efficiency in utilizing its capital have improved significantly in recent quarters, potentially reflecting better operational performance, cost management, or strategic decision-making.
Peer comparison
Dec 31, 2024