Tootsie Roll Industries Inc (TR)
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 | 127,380 | 120,231 | 95,211 | 67,133 | 58,244 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 870,743 | 823,422 | 783,171 | 769,042 | 763,327 |
| Return on total capital | 14.63% | 14.60% | 12.16% | 8.73% | 7.63% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $127,380K ÷ ($—K + $870,743K)
= 14.63%
Tootsie Roll Industries Inc's return on total capital has shown a favorable trend over the years, increasing consistently from 7.63% in December 31, 2020, to 14.63% by December 31, 2024. This indicates the company's ability to generate returns from the total capital employed in its operations. The steady improvement in this ratio suggests that Tootsie Roll Industries is becoming more efficient in utilizing its capital to generate profits, which can be seen as a positive sign of financial performance and management effectiveness. This trend reflects positively on the company's operational efficiency and overall financial health, showcasing a strong and improving return on capital over the period under consideration.
Peer comparison
Dec 31, 2024