Brinks Company (BCO)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	385,400	424,800	456,600	517,778	570,336	630,881	704,854	686,390	648,872	608,956	603,529	572,459	559,964	537,580	533,281	448,686	403,094	346,703	310,211	354,321
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	312,500	277,100	320,500	396,400	397,400	462,800	664,200	605,000	570,200	202,700	240,500	240,000	252,600	249,000	174,000	225,100	202,500	90,000	111,300	82,000
Return on total capital		123.33%	153.30%	142.46%	130.62%	143.52%	136.32%	106.12%	113.45%	113.80%	300.42%	250.95%	238.52%	221.68%	215.90%	306.48%	199.33%	199.06%	385.23%	278.72%	432.10%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $385,400K ÷ ($—K + $312,500K)
= 123.33%

Brinks Company's return on total capital has shown fluctuating trends over the years. The ratios ranged from as high as 432.10% (March 31, 2020) to as low as 106.12% (June 30, 2023), reflecting the company's ability to generate profits relative to the total capital employed in its operations.

There was a notable decrease in the ratio in the latter half of 2022 and throughout 2023, indicating potential challenges in efficiently utilizing the total capital to generate returns. However, the ratio showed signs of improvement in 2024, with values gradually increasing from 123.33% (December 31, 2024) after hitting a low point.

Overall, Brinks Company's return on total capital demonstrates a volatile pattern, suggesting the need for consistent monitoring of operational efficiency and capital allocation strategies to sustain or enhance profitability in the long term.