Brunswick Corporation (BC)
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 | 729,100 | 819,100 | 868,700 | 947,900 | 947,400 | 874,300 | 836,700 | 807,700 | 800,200 | 813,800 | 808,200 | 665,200 | 538,000 | 474,700 | 104,300 | 127,300 | 25,300 | 25,400 | 292,400 | 266,000 |
| Long-term debt | US$ in thousands | 1,975,700 | 1,975,700 | 2,422,000 | 2,420,500 | 2,420,000 | 2,419,100 | 2,499,000 | 2,498,200 | 1,779,000 | 1,787,700 | 832,000 | 900,900 | 908,300 | 1,013,200 | 1,060,400 | 1,069,000 | 1,068,000 | 1,083,000 | 1,240,100 | 1,245,600 |
| Total stockholders’ equity | US$ in thousands | 2,087,400 | 2,085,800 | 2,101,400 | 2,062,500 | 2,042,300 | 2,001,000 | 2,004,600 | 1,979,900 | 1,914,200 | 1,849,700 | 1,769,500 | 1,642,600 | 1,510,000 | 1,458,200 | 1,364,400 | 1,303,700 | 1,300,900 | 1,418,200 | 1,537,300 | 1,526,900 |
| Return on total capital | 17.94% | 20.17% | 19.20% | 21.14% | 21.23% | 19.78% | 18.58% | 18.04% | 21.67% | 22.37% | 31.07% | 26.15% | 22.25% | 19.21% | 4.30% | 5.37% | 1.07% | 1.02% | 10.53% | 9.59% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 fluctuating trend over the past eight quarters. The company experienced a peak return on total capital of 21.46% in both Q1 and Q4 of 2023, indicating efficient utilization of its total capital to generate profits.
Overall, Brunswick Corp.'s return on total capital has generally been in the range of 17% to 21%. This suggests that the company has been effectively managing its capital resources to generate returns for its investors. Additionally, the upward trend in returns from Q2 2022 to Q1 2023 showcases the company's improving efficiency in generating profits from its total invested capital.
It is essential for Brunswick Corp. to sustain or further enhance its return on total capital to ensure continued financial health and attractiveness to investors. Monitoring this ratio over time can provide insights into the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023