TRI Pointe Homes Inc (TPH)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 578,237 | 584,449 | 527,868 | 461,773 | 442,167 | 544,129 | 655,484 | 750,255 | 769,990 | 710,713 | 688,985 | 667,378 | 646,071 | 585,286 | 513,965 | 444,685 | 391,858 | 405,150 | 384,168 | 331,770 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,335,710 | 3,249,950 | 3,139,480 | 3,049,650 | 3,010,960 | 2,923,400 | 2,896,110 | 2,863,620 | 2,832,390 | 2,625,730 | 2,487,570 | 2,408,230 | 2,447,620 | 2,354,140 | 2,279,290 | 2,239,760 | 2,232,540 | 2,198,090 | 2,175,800 | 2,115,280 |
| Return on total capital | 17.33% | 17.98% | 16.81% | 15.14% | 14.69% | 18.61% | 22.63% | 26.20% | 27.19% | 27.07% | 27.70% | 27.71% | 26.40% | 24.86% | 22.55% | 19.85% | 17.55% | 18.43% | 17.66% | 15.68% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $578,237K ÷ ($—K + $3,335,710K)
= 17.33%
TRI Pointe Homes Inc has shown a fluctuating trend in its return on total capital over the reported periods. The return on total capital has displayed an upward trajectory from March 31, 2020, to June 30, 2022, reaching a peak of 27.70%. This indicates an improving efficiency in generating profits from the total capital employed in the business. However, there was a slight decline in the return on total capital from June 30, 2022, to December 31, 2022, with a subsequent drop in the following periods.
The return on total capital peaked again at 27.19% on December 31, 2022, before experiencing a declining trend up to December 31, 2024, where it stood at 17.33%. This downward trajectory suggests potential challenges in maximizing profitability relative to the total capital invested in the business.
Overall, while TRI Pointe Homes Inc has showcased periods of strong returns on total capital, there are fluctuations indicating varying degrees of efficiency in generating profits from its capital base. Monitoring this ratio over time can provide valuable insights into the company's financial performance and capital utilization efficiency.
Peer comparison
Dec 31, 2024