FTI Consulting Inc (FCN)
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 | 372,723 | 307,796 | 318,241 | 282,251 | 307,656 |
| Long-term debt | US$ in thousands | 0 | 315,172 | 297,158 | 286,131 | 275,609 |
| Total stockholders’ equity | US$ in thousands | 1,981,420 | 1,681,720 | 1,583,320 | 1,400,180 | 1,489,140 |
| Return on total capital | 18.81% | 15.41% | 16.92% | 16.74% | 17.43% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $372,723K ÷ ($0K + $1,981,420K)
= 18.81%
FTI Consulting Inc.'s return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital increased to 19.06% from 15.64% in 2022. This improvement suggests that the company has become more efficient in generating returns from its total capital employed. However, the return on total capital in 2023 is still below the levels seen in 2019 and 2020, where it was 17.32% and 17.18%, respectively. This indicates that FTI Consulting Inc. may have room for further optimization in utilizing its total capital to generate returns. Overall, the trend in return on total capital for FTI Consulting Inc. has been relatively stable, with occasional fluctuations, reflecting the company's ability to generate returns efficiently over the years.
Peer comparison
Dec 31, 2023