Taylor Morn Home (TMHC)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,020,341	1,164,068	1,335,814	1,409,265	1,391,488	1,355,127	1,175,251	948,202	844,306	628,487	555,333	474,670	316,177	253,769	196,475	224,276	323,183	302,521	312,400	281,973
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	5,314,940	5,175,110	5,095,310	4,846,550	4,630,330	4,403,470	4,193,900	4,094,800	3,925,850	3,745,900	3,668,850	3,655,560	3,504,540	3,542,140	3,424,740	3,423,040	2,537,710	2,480,200	2,398,660	2,390,730
Return on total capital		19.20%	22.49%	26.22%	29.08%	30.05%	30.77%	28.02%	23.16%	21.51%	16.78%	15.14%	12.98%	9.02%	7.16%	5.74%	6.55%	12.74%	12.20%	13.02%	11.79%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,020,341K ÷ ($—K + $5,314,940K)
= 19.20%

Taylor Morrison Home Corp. has shown a fluctuating trend in its return on total capital over the past eight quarters. The company's return on total capital was highest in Q1 2023 at 20.19% and lowest in Q1 2022 at 14.03%. Overall, the return on total capital has generally been on an upward trajectory since Q1 2022, indicating an improvement in the company's effectiveness in generating profits relative to its total capital employed. It is important to monitor this metric to assess the company's efficiency in utilizing its capital resources to generate returns for its shareholders.