FTI Consulting Inc (FCN)
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 | 357,722 | 372,694 | 307,796 | 318,241 | 295,359 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,258,290 | 1,981,420 | 1,681,720 | 1,583,320 | 1,400,180 |
| Return on total capital | 15.84% | 18.81% | 18.30% | 20.10% | 21.09% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $357,722K ÷ ($—K + $2,258,290K)
= 15.84%
Return on total capital is a key financial metric used to evaluate a company's efficiency in generating returns from both equity and debt capital employed in its operations. FTI Consulting Inc's return on total capital has shown a gradual decline over the past five years. Starting at 21.09% as of December 31, 2020, the return decreased to 20.10% by the end of 2021, further declining to 18.30% by the end of 2022. However, there was a slight increase to 18.81% by the end of 2023. The most significant drop was observed as the return on total capital fell to 15.84% by December 31, 2024. This trend indicates a decreasing ability of the company to efficiently utilize its total capital to generate profits over the specified period. It is essential for FTI Consulting Inc to closely monitor and address factors affecting its return on total capital to enhance overall financial performance and shareholder value.
Peer comparison
Dec 31, 2024