Fortune Brands Innovations Inc. (FBIN)
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 | 737,900 | 614,900 | 933,100 | 1,023,400 | 747,700 |
| Long-term debt | US$ in thousands | 2,173,700 | 2,670,100 | 2,074,300 | 2,309,800 | 2,572,200 |
| Total stockholders’ equity | US$ in thousands | 2,422,000 | 2,293,400 | 2,086,900 | 3,064,800 | 2,775,500 |
| Return on total capital | 16.06% | 12.39% | 22.42% | 19.04% | 13.98% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $737,900K ÷ ($2,173,700K + $2,422,000K)
= 16.06%
Based on the provided data, Fortune Brands Innovations Inc.'s return on total capital has shown fluctuations over the period of 2020 to 2024.
In 2020, the company had a return on total capital of 13.98%, indicating the company generated 13.98% return for every dollar of capital employed. This was followed by an increase in 2021 to 19.04%, suggesting an improvement in the company's capital utilization efficiency.
The return on total capital further increased significantly in 2022 to 22.42%, reflecting a better profitability and efficient use of total capital. However, in 2023, the return on total capital decreased to 12.39%, indicating a decline in the company's ability to generate returns from its total capital.
In 2024, the return on total capital slightly recovered to 16.06%, although it remained below the peak level observed in 2022. Overall, the trend of return on total capital for Fortune Brands Innovations Inc. shows variability, with fluctuations indicating changes in the company's profitability and effectiveness in utilizing its total capital during the period analyzed.
Peer comparison
Dec 31, 2024