Fluor Corporation (FLR)
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 | 506,000 | 275,000 | 376,000 | 439,000 | 535,000 | 611,000 | 396,000 | 308,000 | 226,000 | 223,318 | 313,060 | 239,460 | 211,291 | 115,864 | 130,623 | 196,462 | 241,080 | 345,751 | 329,954 | -418,654 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,949,000 | 2,251,000 | 2,142,000 | 1,951,000 | 1,940,000 | 1,883,000 | 1,797,000 | 1,719,000 | 1,786,000 | 1,650,000 | 1,514,000 | 1,469,000 | 1,392,450 | 1,597,530 | 1,515,550 | 983,654 | 1,030,250 | 1,091,640 | 1,487,750 | 1,091,640 |
| Return on total capital | 12.81% | 12.22% | 17.55% | 22.50% | 27.58% | 32.45% | 22.04% | 17.92% | 12.65% | 13.53% | 20.68% | 16.30% | 15.17% | 7.25% | 8.62% | 19.97% | 23.40% | 31.67% | 22.18% | -38.35% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $506,000K ÷ ($—K + $3,949,000K)
= 12.81%
Fluor Corporation's return on total capital has fluctuated over the period from March 31, 2020, to December 31, 2024. The return on total capital was highly negative at -38.35% on March 31, 2020, indicating a significant loss relative to the capital employed. However, the company's performance improved significantly in the following quarters, with returns reaching as high as 32.45% on September 30, 2023. This suggests that the company was able to generate a relatively higher level of profit compared to the capital invested during that period.
Subsequently, the return on total capital exhibited some variability, with values fluctuating between 8.62% and 22.50% in the latter quarters of the series. The decreasing trend observed towards the end of the period, as evidenced by the return dropping to 12.81% by December 31, 2024, may indicate potential challenges in efficiently utilizing the total capital to generate returns for the business.
Overall, it is essential for Fluor Corporation to continuously assess and optimize the allocation of its capital to ensure sustainable returns and long-term profitability. Efforts to enhance operational efficiency and profitability can help the company improve its return on total capital and create value for its stakeholders.
Peer comparison
Dec 31, 2024