FMC Corporation (FMC)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	555,600	932,000	1,041,800	1,145,500	1,144,300	1,021,800	1,026,900	1,078,400	1,034,500	909,400	889,700	870,200	902,200	867,400	831,300	831,200	821,600	887,000	832,200	697,700
Long-term debt	US$ in thousands	3,023,600	3,022,900	3,022,000	2,334,000	2,733,200	2,732,500	2,731,700	2,732,400	2,731,700	2,631,700	2,630,800	2,631,400	2,929,500	3,028,300	3,027,500	3,531,800	3,031,100	3,032,400	2,144,300	2,145,000
Total stockholders’ equity	US$ in thousands	4,410,900	3,290,900	3,353,000	3,470,700	3,377,900	3,188,200	3,108,500	3,059,100	3,124,300	3,031,400	3,110,700	3,008,600	2,961,800	2,944,500	2,822,200	2,675,400	2,532,300	2,649,200	2,763,600	2,761,000
Return on total capital		7.47%	14.76%	16.34%	19.73%	18.72%	17.26%	17.58%	18.62%	17.67%	16.06%	15.50%	15.43%	15.31%	14.52%	14.21%	13.39%	14.77%	15.61%	16.96%	14.22%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $555,600K ÷ ($3,023,600K + $4,410,900K)
= 7.47%

FMC Corp.'s return on total capital has exhibited variations over the past eight quarters. The company's return on total capital ranged between 9.18% and 18.60% during this period. The highest return on total capital was recorded in Q4 2022 at 18.60%, followed by 17.59% in Q1 2022. The lowest return on total capital was observed in Q4 2023 at 9.18%.

Overall, FMC Corp.'s return on total capital has shown a slight downward trend from the peak in Q4 2022 to the recent decrease in Q4 2023. This trend suggests that the company may be facing challenges in generating returns on its total capital investment in the most recent quarter. It would be important for stakeholders to monitor future performance to understand the factors influencing fluctuations in return on total capital.