Upbound Group Inc. (UPBD)
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 | 288,126 | 166,285 | 149,179 | 265,178 | 238,104 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 628,984 | 560,372 | 525,146 | 513,276 | 592,080 |
| Return on total capital | 45.81% | 29.67% | 28.41% | 51.66% | 40.21% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $288,126K ÷ ($—K + $628,984K)
= 45.81%
Return on total capital is a key financial ratio that measures a company's ability to generate profits from its total capital employed, including both equity and debt.
Analyzing Upbound Group Inc.'s return on total capital over the past five years reveals fluctuating performance. In 2020, the return on total capital was 40.21%, showing a strong ability to generate returns relative to the capital invested. This ratio increased significantly to 51.66% in 2021, indicating improved efficiency in utilizing its total capital resources.
However, in the subsequent years, Upbound Group Inc.'s return on total capital experienced a decline. By the end of 2022, the ratio dropped to 28.41%, suggesting a decrease in profit generation relative to the total capital employed. This trend continued into 2023 with a slight increase to 29.67%, still below the levels observed in the earlier years.
In the most recent year, 2024, Upbound Group Inc. managed to improve its return on total capital to 45.81%, signaling a recovery in profitability relative to the total capital employed compared to the preceding years.
Overall, Upbound Group Inc.'s return on total capital has exhibited variability in performance over the past five years, with a peak in 2021 and fluctuations in the subsequent years. This indicates the company's changing ability to generate profits from the capital invested, highlighting the importance of monitoring and analyzing this ratio for insights into financial performance and efficiency.
Peer comparison
Dec 31, 2024