Corning Incorporated (GLW)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,135,000 | 890,000 | 1,438,000 | 2,112,000 | 509,000 |
| Long-term debt | US$ in thousands | 6,400,000 | 7,000,000 | 6,100,000 | 8,300,000 | 9,400,000 |
| Total stockholders’ equity | US$ in thousands | 10,686,000 | 11,551,000 | 12,008,000 | 12,333,000 | 13,257,000 |
| Return on total capital | 6.64% | 4.80% | 7.94% | 10.24% | 2.25% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,135,000K ÷ ($6,400,000K + $10,686,000K)
= 6.64%
Corning Incorporated's return on total capital has fluctuated over the past five years, ranging from a low of 2.25% in December 2020 to a high of 10.24% in December 2021. In 2022, the return decreased to 7.94%, followed by a further decline to 4.80% in 2023. However, there was a slight improvement in the return on total capital to 6.64% by December 2024.
The return on total capital measures the company's ability to generate profit from both its equity and debt investments. The increasing trend from 2020 to 2021 indicates improved efficiency in utilizing the company's capital resources. However, the subsequent decrease in returns in 2022 and 2023 might suggest challenges in maintaining profitability or managing capital effectively.
Overall, the return on total capital for Corning Incorporated shows some variability, reflecting changing market conditions and the company's financial performance. Further analysis of the underlying factors contributing to these fluctuations would be needed to determine the sustainable growth and value creation potential of the company.
Peer comparison
Dec 31, 2024