Brinks Company (BCO)

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	430,700	350,800	337,700	169,100	180,600
Long-term debt	US$ in thousands	3,262,500	3,273,200	2,841,700	2,334,200	1,554,800
Total stockholders’ equity	US$ in thousands	397,400	447,100	123,000	128,800	191,800
Return on total capital		11.77%	9.43%	11.39%	6.87%	10.34%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $430,700K ÷ ($3,262,500K + $397,400K)
= 11.77%

Brink`s Co. has shown a fluctuating trend in its return on total capital over the past five years. The return on total capital was 12.46% in 2023, reflecting an improvement from the previous year's 10.33% and the year 2020's 9.12%. However, the return has declined compared to 2019 when it peaked at 14.57%. Overall, the return on total capital indicates the company's ability to generate profits from the total capital employed in its operations, with the recent increase suggesting enhanced efficiency in capital utilization as of 2023.