H B Fuller Company (FUL)
Return on total capital
| Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 355,137 | 322,718 | 252,612 | 218,317 | 225,994 |
| Long-term debt | US$ in thousands | 1,836,590 | 1,736,260 | 1,591,480 | 1,756,980 | 1,898,380 |
| Total stockholders’ equity | US$ in thousands | 1,755,200 | 1,610,170 | 1,596,770 | 1,381,320 | 1,222,350 |
| Return on total capital | 9.89% | 9.64% | 7.92% | 6.96% | 7.24% |
December 2, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $355,137K ÷ ($1,836,590K + $1,755,200K)
= 9.89%
H.B. Fuller Company's return on total capital has shown a consistent upward trend over the past five years. The company's return on total capital increased from 7.29% in 2019 to 9.96% in 2023, indicating an improvement in the company's ability to generate earnings from its total capital employed. This upward trend suggests that the company has been effectively utilizing its capital to generate profits. The increasing trend in return on total capital reflects positively on the company's operational efficiency and profitability, indicating a strong performance in utilizing both its debt and equity capital to generate returns for its investors. This is a positive indication for the company's financial performance and may be a result of effective management and strategic deployment of its capital resources.