Fluor Corporation (FLR)
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 | 659,000 | 260,000 | 158,000 | -257,000 | 67,186 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,949,000 | 1,940,000 | 1,786,000 | 1,392,450 | 1,030,250 |
| Return on total capital | 16.69% | 13.40% | 8.85% | -18.46% | 6.52% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $659,000K ÷ ($—K + $3,949,000K)
= 16.69%
Fluor Corporation's return on total capital has shown significant fluctuations over the years. In 2020, the return was 6.52%, indicating that the company generated a positive return on its total invested capital. However, in 2021, the return deteriorated sharply to -18.46%, suggesting that the company experienced a significant decline in profitability and efficiency in utilizing its capital.
The following years saw an improvement in the return on total capital. By the end of 2022, the return increased to 8.85%, indicating a recovery in the company's operational performance and efficiency in generating returns on its invested capital. In 2023, the return further improved to 13.40%, reflecting a strong growth in profitability and effective capital utilization by the company.
By the end of 2024, Fluor Corporation achieved a return on total capital of 16.69%, which suggests a continued positive trend in the company's financial performance and efficiency in generating returns for its capital providers. Overall, the fluctuation in return on total capital highlights the company's dynamic financial performance and its ability to adapt to changing market conditions.
Peer comparison
Dec 31, 2024