FMC Corporation (FMC)

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	651,600	535,000	1,131,700	1,024,700	878,400
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	4,487,500	4,410,900	3,400,900	3,051,900	2,984,200
Return on total capital		14.52%	12.13%	33.28%	33.58%	29.44%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $651,600K ÷ ($—K + $4,487,500K)
= 14.52%

FMC Corporation's return on total capital has shown variability over the past five years. The ratio increased from 29.44% as of December 31, 2020, to 33.58% by December 31, 2021, indicating improved efficiency in generating returns relative to the invested capital during that period.

However, there was a slight decline in the return on total capital to 33.28% by December 31, 2022. A more significant decrease was observed by December 31, 2023, where the return on total capital dropped to 12.13%, signaling a notable decrease in efficiency in utilizing total capital to generate profits.

By December 31, 2024, there was a slight recovery in the return on total capital to 14.52%, but it remained below the levels seen in the earlier years. This pattern suggests fluctuations in the company's ability to generate returns in relation to the total capital employed.

In summary, while FMC Corporation's return on total capital experienced fluctuations over the five-year period, it is essential for the company to focus on maintaining and improving efficiency in utilizing its capital resources to enhance profitability and long-term sustainability.