Taylor Morn Home (TMHC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,155,750 | 1,020,340 | 1,391,490 | 844,306 | 316,177 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,866,540 | 5,314,940 | 4,630,330 | 3,925,850 | 3,504,540 |
| Return on total capital | 19.70% | 19.20% | 30.05% | 21.51% | 9.02% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,155,750K ÷ ($—K + $5,866,540K)
= 19.70%
Taylor Morn Home's return on total capital has shown a significant increase over the years, from 9.02% in December 31, 2020 to 21.51% in December 31, 2021, and further to 30.05% in December 31, 2022. This upward trend indicates an improvement in the company's capability to generate profits from the total capital employed in its operations. However, there was a slight dip in the return on total capital to 19.20% in December 31, 2023, followed by a slight recovery to 19.70% in December 31, 2024. Overall, the company's return on total capital remains relatively healthy, reflecting efficient utilization of its total capital resources to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024