Tootsie Roll Industries Inc (TR)
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 | 120,257 | 98,290 | 85,793 | 76,447 | 85,705 |
| Long-term debt | US$ in thousands | 7,500 | 7,500 | 7,500 | 7,500 | 7,500 |
| Total stockholders’ equity | US$ in thousands | 823,422 | 783,171 | 769,042 | 763,327 | 759,854 |
| Return on total capital | 14.47% | 12.43% | 11.05% | 9.92% | 11.17% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $120,257K ÷ ($7,500K + $823,422K)
= 14.47%
Tootsie Roll Industries, Inc.'s return on total capital has fluctuated over the past five years, ranging from 7.55% in 2020 to 13.99% in 2022. The return on total capital for 2023 was 12.24%, indicating that the company generated a return equivalent to 12.24% of its total capital employed during that year.
The higher returns in 2022 and 2023 compared to the earlier years may suggest improved operational efficiency or profitability. However, the decreasing trend from 2022 to 2023 could indicate potential challenges in maintaining or increasing returns on capital in the future.
Overall, an analysis of Tootsie Roll Industries' return on total capital over the five-year period provides insights into the company's ability to generate profits relative to the total capital invested in its business.
Peer comparison
Dec 31, 2023