TRI Pointe Homes Inc (TPH)
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 | 461,866 | 766,863 | 625,662 | 373,377 | 271,087 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,010,960 | 2,832,390 | 2,447,620 | 2,232,540 | 2,186,530 |
| Return on total capital | 15.34% | 27.07% | 25.56% | 16.72% | 12.40% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $461,866K ÷ ($—K + $3,010,960K)
= 15.34%
Tri Pointe Homes Inc.'s return on total capital has fluctuated over the past five years, ranging from 7.61% in 2019 to 18.31% in 2022. The company's return on total capital was 9.74% in 2023, showing a decline from the previous year. This indicates that in 2023, the company generated a return of 9.74% for every dollar of total capital employed in its operations. While the return decreased compared to the prior year, it is still higher than in 2020 and 2019, suggesting that the company's capital utilization and profitability improved during this period. Further analysis is needed to understand the factors driving these fluctuations and assess the company's overall financial performance.
Peer comparison
Dec 31, 2023