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.