Corning Incorporated (GLW)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 890,000 | 1,438,000 | 2,112,000 | 509,000 | 1,306,000 |
| Long-term debt | US$ in thousands | 7,000,000 | 6,100,000 | 8,300,000 | 9,400,000 | 8,500 |
| Total stockholders’ equity | US$ in thousands | 11,551,000 | 12,008,000 | 12,333,000 | 13,257,000 | 12,907,000 |
| Return on total capital | 4.80% | 7.94% | 10.24% | 2.25% | 10.11% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $890,000K ÷ ($7,000,000K + $11,551,000K)
= 4.80%
Corning, Inc.'s return on total capital has varied over the past five years. The company experienced a decrease in return on total capital from 2019 to 2020, where it dropped to 2.28%. However, in the subsequent years, there was an improvement in performance, with return on total capital increasing to 6.41% in 2019, 11.08% in 2021, and 7.60% in 2022.
In 2023, Corning, Inc. reported a return on total capital of 4.67%. This marks a decrease compared to the previous year, suggesting a slight decline in the company's efficiency in generating returns from its total capital. It is important for stakeholders to monitor this trend to understand the factors influencing the company's return on total capital and to assess its overall financial performance and efficiency.
Peer comparison
Dec 31, 2023