Vulcan Materials Company (VMC)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,427,300	1,248,700	1,135,200	991,700	951,500	971,400	928,400	908,300	1,010,800	995,830	1,021,534	1,032,930	895,731	892,876	908,148	885,326	877,458	870,374	816,182	770,951
Long-term debt	US$ in thousands	3,877,300	3,874,300	3,873,200	3,876,900	3,875,200	3,874,200	3,873,700	3,874,500	3,874,800	3,874,100	2,769,900	2,772,900	2,772,200	2,777,070	2,785,650	2,785,570	2,784,320	2,783,070	2,781,830	2,780,590
Total stockholders’ equity	US$ in thousands	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	6,293,100	6,136,200	6,027,300	5,928,350	5,764,150	5,590,330	5,621,860	5,542,240	5,371,450	5,217,210
Return on total capital		12.56%	11.04%	10.25%	9.13%	8.81%	9.05%	8.76%	8.69%	9.70%	9.67%	11.27%	11.59%	10.18%	10.26%	10.62%	10.57%	10.44%	10.45%	10.01%	9.64%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,427,300K ÷ ($3,877,300K + $7,483,400K)
= 12.56%

The return on total capital for Vulcan Materials Co has shown a positive trend over the past eight quarters. The return on total capital has consistently increased from 8.55% in Q1 2022 to 12.14% in Q4 2023. This indicates that the company has been able to efficiently deploy its total capital to generate returns for its investors.

The progressive improvement in return on total capital reflects positively on Vulcan Materials Co's management of its capital structure and operational efficiency. The company's ability to generate higher returns on its total capital suggests effective utilization of resources and potential growth opportunities.

Overall, the upward trajectory of return on total capital for Vulcan Materials Co signifies a strong financial performance and effective capital allocation strategy, which may enhance shareholder value and support sustainable business growth in the future.