Tempur Sealy International Inc (TPX)
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 | 601,400 | 677,700 | 889,100 | 528,400 | 349,900 |
| Long-term debt | US$ in thousands | — | — | — | — | 1,502,600 |
| Total stockholders’ equity | US$ in thousands | 333,400 | -12,300 | 285,800 | 503,600 | 359,500 |
| Return on total capital | 180.38% | — | 311.09% | 104.92% | 18.79% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $601,400K ÷ ($—K + $333,400K)
= 180.38%
Tempur Sealy International Inc's return on total capital has shown variation over the past five years. In 2021, the company achieved a high return of 34.86%, indicating efficient utilization of both equity and debt to generate profits. There was a slight decline in 2022 to 24.41%, but the return remained relatively strong. In 2023, the return decreased further to 20.97%, signaling a potential decrease in profitability or less effective capital allocation strategies compared to the previous year. However, it is essential to consider other factors such as changes in the business environment or investment decisions that may have influenced these fluctuations. Overall, the return on total capital for Tempur Sealy International Inc has generally been positive and reflective of its ability to generate earnings from its invested capital.
Peer comparison
Dec 31, 2023