Vulcan Materials Company (VMC)
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 | 1,428,700 | 937,800 | 1,020,200 | 876,300 | 883,100 |
| Long-term debt | US$ in thousands | 3,877,300 | 3,875,200 | 3,874,800 | 2,772,200 | 2,784,320 |
| Total stockholders’ equity | US$ in thousands | 7,483,400 | 6,928,600 | 6,545,000 | 6,027,300 | 5,621,860 |
| Return on total capital | 12.58% | 8.68% | 9.79% | 9.96% | 10.51% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,428,700K ÷ ($3,877,300K + $7,483,400K)
= 12.58%
Vulcan Materials Co's return on total capital has shown a fluctuating trend over the past five years. The return on total capital increased from 8.54% in 2021 to 9.25% in 2022, indicating an improvement in the company's ability to generate profits from the total capital employed. However, there was a slight decrease in the return on total capital to 12.14% in 2023, though it remained higher than the levels in 2020 and 2019.
Overall, the company's return on total capital has demonstrated variability, which could suggest fluctuations in the efficiency of capital utilization and profitability. Further analysis and comparison with industry peers may provide additional insights into Vulcan Materials Co's performance in utilizing its total capital effectively.
Peer comparison
Dec 31, 2023