H B Fuller Company (FUL)
Return on total capital
| Nov 30, 2024 | Dec 2, 2023 | Dec 3, 2022 | Nov 27, 2021 | Nov 28, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 348,220 | 355,137 | 322,718 | 252,612 | 218,317 |
| Long-term debt | US$ in thousands | 2,010,050 | 1,836,590 | 1,736,260 | 1,591,480 | 1,756,980 |
| Total stockholders’ equity | US$ in thousands | 1,828,660 | 1,755,200 | 1,610,170 | 1,596,770 | 1,381,320 |
| Return on total capital | 9.07% | 9.89% | 9.64% | 7.92% | 6.96% |
November 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $348,220K ÷ ($2,010,050K + $1,828,660K)
= 9.07%
The return on total capital for H B Fuller Company has shown a positive trend over the past five years, increasing from 6.96% as of November 28, 2020, to 9.07% as of November 30, 2024. This indicates that the company has been more efficient in generating returns for both equity and debt holders relative to the total capital employed. The gradual improvement in the return on total capital suggests that H B Fuller has been effectively utilizing its capital to generate profits and create value for its stakeholders. Overall, the increasing trend in this ratio reflects positively on the company's operational efficiency and financial performance over the specified period.
Peer comparison
Nov 30, 2024