Fortrea Holdings Inc. (FTRE)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -161,900 | -112,800 | -78,100 | 12,400 |
| Long-term debt | US$ in thousands | 1,049,700 | 1,124,500 | 1,123,800 | 1,559,400 |
| Total stockholders’ equity | US$ in thousands | 1,362,400 | 1,513,500 | 1,461,100 | 1,591,900 |
| Return on total capital | -6.71% | -4.28% | -3.02% | 0.39% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-161,900K ÷ ($1,049,700K + $1,362,400K)
= -6.71%
Fortrea Holdings Inc.'s return on total capital has shown a declining trend over the course of the year 2024. In March 2024, the return on total capital was a modest 0.39%, indicating some profitability. However, from June 2024 to December 2024, there was a continuous decrease in performance, with negative returns of -3.02%, -4.28%, and -6.71% respectively.
The negative values suggest that the company's profits are not sufficient to cover its total capital employed, which may raise concerns about its operational efficiency and financial health. It is important for Fortrea Holdings Inc. to address the underlying issues contributing to this decline in return on total capital to ensure sustainable growth and value creation for its stakeholders.
Peer comparison
Dec 31, 2024