Vulcan Materials Company (VMC)
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 | 1,363,300 | 1,439,100 | 882,900 | 1,021,100 | 877,472 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,118,600 | 7,483,400 | 6,928,600 | 6,545,000 | 6,027,330 |
| Return on total capital | 16.79% | 19.23% | 12.74% | 15.60% | 14.56% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,363,300K ÷ ($—K + $8,118,600K)
= 16.79%
Vulcan Materials Company's return on total capital has shown variability over the past five years. The ratio increased from 14.56% as of December 31, 2020, to 15.60% by December 31, 2021, indicating improved efficiency in generating profits relative to the total capital employed. However, in 2022, the return on total capital declined to 12.74%, suggesting a decrease in profitability compared to the previous year.
The return on total capital then saw a significant rebound in 2023, reaching 19.23%, which could be a positive sign of enhanced operational performance and effective capital utilization. In the most recent year, December 31, 2024, the ratio decreased slightly to 16.79%, but it remained relatively strong compared to the base year.
Overall, Vulcan Materials Company's return on total capital has exhibited fluctuations, with periods of both improvement and decline. It is crucial for investors and stakeholders to track this metric over time to assess the company's ability to generate returns relative to the total capital invested.
Peer comparison
Dec 31, 2024