Brunswick Corporation (BC)
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 | 729,100 | 947,400 | 800,200 | 538,000 | 25,300 |
| Long-term debt | US$ in thousands | 1,975,700 | 2,420,000 | 1,779,000 | 908,300 | 1,068,000 |
| Total stockholders’ equity | US$ in thousands | 2,087,400 | 2,042,300 | 1,914,200 | 1,510,000 | 1,300,900 |
| Return on total capital | 17.94% | 21.23% | 21.67% | 22.25% | 1.07% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $729,100K ÷ ($1,975,700K + $2,087,400K)
= 17.94%
Brunswick Corp.'s return on total capital has shown a declining trend over the past five years. As of December 31, 2023, the return on total capital stands at 17.23%, down from 21.46% in 2022, 21.87% in 2021, 22.26% in 2020, and 20.62% in 2019.
This decreasing trend indicates that the company's ability to generate returns from its total capital has weakened over the period, potentially signaling inefficiencies in capital utilization or declining profitability. It is important for Brunswick Corp. to investigate the underlying reasons for this decline and implement strategies to improve their return on total capital to enhance overall financial performance.
Peer comparison
Dec 31, 2023