Olympic Steel Inc (ZEUS)
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 | 77,671 | 72,054 | 70,255 | 98,348 | 133,747 | 162,353 | 205,427 | 193,999 | 172,467 | 141,557 | 79,034 | 29,112 | 573 | -3,782 | 162 | 13,587 | 16,610 | 17,369 | 32,402 | 50,781 |
| Long-term debt | US$ in thousands | 190,198 | 196,527 | 238,240 | 258,765 | 165,658 | 244,200 | 287,880 | 311,185 | 327,764 | 297,880 | 268,975 | 191,903 | 160,609 | 171,299 | 196,946 | 209,052 | 192,925 | 223,004 | 264,649 | 313,269 |
| Total stockholders’ equity | US$ in thousands | 555,478 | 549,321 | 538,463 | 524,551 | 515,968 | 512,655 | 499,559 | 462,786 | 424,439 | 512,655 | 353,820 | 323,775 | 424,439 | 298,835 | 299,938 | 306,392 | 308,352 | 308,648 | 308,463 | 309,200 |
| Return on total capital | 10.42% | 9.66% | 9.05% | 12.56% | 19.62% | 21.45% | 26.09% | 25.07% | 22.93% | 17.46% | 12.69% | 5.65% | 0.10% | -0.80% | 0.03% | 2.64% | 3.31% | 3.27% | 5.65% | 8.16% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $77,671K ÷ ($190,198K + $555,478K)
= 10.42%
Olympic Steel Inc.'s return on total capital has shown some fluctuations over the past eight quarters. The return on total capital was 10.42% in Q4 2023, lower than the previous quarter's 9.66% in Q3 2023. Comparing these two quarters, there was a slight increase in Q4 2023. However, the return on total capital in Q4 2023 was lower compared to the same quarter in the previous year, where it stood at 19.62% in Q4 2022.
Overall, the return on total capital for Olympic Steel Inc. has experienced some variability but has generally remained positive. It is essential for the company to consistently monitor and manage its capital investments to maintain a healthy return on total capital and create sustainable value for its stakeholders.
Peer comparison
Dec 31, 2023