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.