FMC Corporation (FMC)

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	439,400	1,033,500	963,200	854,900	749,300
Long-term debt	US$ in thousands	3,023,600	2,733,200	2,731,700	2,929,500	3,031,100
Total stockholders’ equity	US$ in thousands	4,410,900	3,377,900	3,124,300	2,961,800	2,532,300
Return on total capital		5.91%	16.91%	16.45%	14.51%	13.47%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $439,400K ÷ ($3,023,600K + $4,410,900K)
= 5.91%

FMC Corp.'s return on total capital has exhibited some fluctuations over the past five years. The ratio has ranged from a low of 9.18% in 2023 to a high of 18.60% in 2022. This suggests that the company's ability to generate profits relative to its total capital employed has varied significantly. The downward trend from 2022 to 2023 may indicate a decline in efficiency or profitability in utilizing the total capital. Further analysis is needed to understand the factors contributing to these fluctuations and assess the long-term sustainability of FMC Corp.'s returns on total capital.