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.
Peer comparison
Dec 31, 2023