Brinks Company (BCO)
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 | 501,700 | 439,600 | 367,200 | 336,600 | 166,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 312,500 | 397,400 | 570,200 | 252,600 | 202,500 |
| Return on total capital | 160.54% | 110.62% | 64.40% | 133.25% | 82.07% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $501,700K ÷ ($—K + $312,500K)
= 160.54%
Brinks Company's return on total capital has displayed varying trends over the past five years.
In December 2020, the return on total capital stood at a robust 82.07%, indicating that the company efficiently utilized its capital to generate profits. This was followed by a significant increase by December 2021, reaching 133.25%, showcasing an improvement in capital efficiency and profitability.
However, by December 2022, the return on total capital dropped to 64.40%, reflecting a decline in the company's ability to generate profits from its total capital base. The subsequent year, December 2023, saw a rebound in this ratio to 110.62%, suggesting a recovery in capital utilization and profitability.
The most recent data point in December 2024 revealed a further increase in the return on total capital to 160.54%, indicating a noteworthy improvement in capital efficiency and profitability for Brinks Company.
Overall, the fluctuating trend in the return on total capital for Brinks Company highlights the importance of closely monitoring capital utilization to ensure sustained profitability and efficient use of resources.
Peer comparison
Dec 31, 2024