Taylor Morn Home (TMHC)
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 | 1,020,340 | 1,391,490 | 844,306 | 316,177 | 323,183 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,314,940 | 4,630,330 | 3,925,850 | 3,504,540 | 2,537,710 |
| Return on total capital | 19.20% | 30.05% | 21.51% | 9.02% | 12.74% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,020,340K ÷ ($—K + $5,314,940K)
= 19.20%
Taylor Morrison Home Corp.'s Return on Total Capital has exhibited fluctuations over the past five years. The return peaked in 2022 at 20.17% before dropping to 14.91% in 2023. Despite the decrease in 2023, the company's return remained above 10%, indicating efficient utilization of both equity and debt capital to generate profits. The consistent positive returns suggest that Taylor Morrison Home Corp. has been effective in generating value for its investors over the years. However, the downward trend in recent years may require further analysis to identify the factors contributing to the fluctuations and assess the sustainability of the company's capital allocation strategies.
Peer comparison
Dec 31, 2023