Vulcan Materials Company (VMC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,363,900 | 1,323,600 | 1,402,900 | 1,405,300 | 1,422,800 | 1,249,000 | 1,143,200 | 995,100 | 955,000 | 960,861 | 919,686 | 912,558 | 1,019,502 | 991,880 | 1,023,162 | 1,026,950 | 883,614 | 904,995 | 912,423 | 888,452 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,118,600 | 7,869,000 | 7,705,300 | 7,491,900 | 7,483,400 | 7,440,600 | 7,202,600 | 6,986,900 | 6,928,600 | 6,855,700 | 6,721,100 | 6,575,300 | 6,545,000 | 6,426,100 | 6,293,110 | 6,136,240 | 6,027,330 | 5,928,350 | 5,764,150 | 5,590,330 |
| Return on total capital | 16.80% | 16.82% | 18.21% | 18.76% | 19.01% | 16.79% | 15.87% | 14.24% | 13.78% | 14.02% | 13.68% | 13.88% | 15.58% | 15.44% | 16.26% | 16.74% | 14.66% | 15.27% | 15.83% | 15.89% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,363,900K ÷ ($—K + $8,118,600K)
= 16.80%
Vulcan Materials Company's return on total capital has shown fluctuations over the periods provided. The return on total capital ranged from a peak of 19.01% as of December 31, 2023, to a low of 13.68% as of June 30, 2022. The return on total capital generally trended upwards from March 31, 2020, to December 31, 2023, indicating an improvement in the company's ability to generate profits relative to the total capital employed. However, there was a slight decline in the return on total capital in the most recent periods, ending at 16.80% as of December 31, 2024.
It is essential for stakeholders to monitor the return on total capital closely as it provides insights into the efficiency and profitability of Vulcan Materials Company in utilizing its total capital to generate returns. The fluctuations in the return on total capital highlight the importance of assessing the company's operational performance and capital allocation strategies to ensure sustainable and profitable growth in the long term.
Peer comparison
Dec 31, 2024