Brunswick Corporation (BC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 329,900 | 734,900 | 952,100 | 802,400 | 540,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 200,000 | 2,087,400 | 2,042,300 | 1,914,200 | 1,510,000 |
| Return on total capital | 164.95% | 35.21% | 46.62% | 41.92% | 35.77% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $329,900K ÷ ($—K + $200,000K)
= 164.95%
Brunswick Corporation's return on total capital has displayed a fluctuating trend over the past five years. The company's return on total capital was 35.77% as of December 31, 2020, showing a solid performance. This metric then increased to 41.92% by the end of 2021, indicating an improvement in the company's capital utilization efficiency.
The return on total capital continued to rise significantly to 46.62% by December 31, 2022, reflecting the company's effective management of both debt and equity to generate returns for its capital providers. However, there was a slight decline to 35.21% by the end of 2023, potentially indicating a temporary challenge in capital productivity or efficiency.
Notably, in December 31, 2024, the return on total capital exhibited a remarkable surge to 164.95%, which is substantially higher than the previous years. Such a dramatic increase could be attributed to various factors like improved profitability, efficient capital allocation, or specific one-time events impacting the financial ratios.
Overall, while the return on total capital has shown variability over the period under review, the recent surge in 2024 reflects a significant uptrend in the company's ability to generate returns on the total capital employed, potentially indicating increased profitability and efficiency in capital utilization.
Peer comparison
Dec 31, 2024