TRI Pointe Homes Inc (TPH)
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 | 576,867 | 428,010 | 779,340 | 646,071 | 391,858 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,335,710 | 3,010,960 | 2,832,390 | 2,447,620 | 2,232,540 |
| Return on total capital | 17.29% | 14.22% | 27.52% | 26.40% | 17.55% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $576,867K ÷ ($—K + $3,335,710K)
= 17.29%
TRI Pointe Homes Inc's return on total capital has displayed varying performance over the years. The ratio increased from 17.55% on December 31, 2020, to 26.40% on December 31, 2021, indicating improved capital efficiency. The trend continued with a further rise to 27.52% on December 31, 2022, demonstrating strong utilization of total capital. However, the ratio declined significantly to 14.22% on December 31, 2023, suggesting potential challenges in capital deployment or profitability. The most recent data point, December 31, 2024, shows a slight recovery to 17.29%, but it remains below the peak levels observed earlier in the period. Overall, TRI Pointe Homes Inc's return on total capital highlights the company's ability to generate returns relative to the total capital employed, signaling fluctuations in efficiency and profitability.
Peer comparison
Dec 31, 2024