Olympic Steel Inc (ZEUS)
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 | 77,671 | 133,747 | 172,466 | 573 | 16,610 |
| Long-term debt | US$ in thousands | 190,198 | 165,658 | 327,764 | 160,609 | 192,925 |
| Total stockholders’ equity | US$ in thousands | 555,478 | 515,968 | 424,439 | 424,439 | 308,352 |
| Return on total capital | 10.42% | 19.62% | 22.93% | 0.10% | 3.31% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $77,671K ÷ ($190,198K + $555,478K)
= 10.42%
The return on total capital for Olympic Steel Inc. has exhibited variability over the past five years, ranging from a low of 0.12% in 2020 to a high of 22.93% in 2021. In 2023, the return on total capital was 10.42%, showing a decrease from the previous year's figure of 19.62%. This suggests that the company's ability to generate returns from its total capital declined in 2023 compared to the prior year. Analyzing the trend over the five-year period, it is evident that the return on total capital has been somewhat inconsistent, with significant fluctuations in performance. Further investigation into the factors influencing these fluctuations would be necessary to assess the overall efficiency and profitability of Olympic Steel Inc.
Peer comparison
Dec 31, 2023