Corning Incorporated (GLW)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 890,000 | 898,000 | 954,000 | 1,165,000 | 1,438,000 | 1,835,000 | 2,095,000 | 2,180,000 | 2,112,000 | 2,105,000 | 1,810,000 | 1,132,000 | 509,000 | 180,000 | 288,000 | 765,000 | 1,306,000 | 1,623,000 | 1,780,000 | 1,801,000 |
| Long-term debt | US$ in thousands | 7,000,000 | 6,500,000 | 7,100,000 | 6,400,000 | 6,100,000 | 5,900,000 | 6,400,000 | 7,300,000 | 8,300,000 | 8,400,000 | 8,500,000 | 8,700,000 | 9,400,000 | 9,200,000 | 8,900,000 | 8,500,000 | 8,500 | 6,900,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 11,551,000 | 11,430,000 | 11,412,000 | 11,925,000 | 12,008,000 | 11,284,000 | 11,734,000 | 12,395,000 | 12,333,000 | 12,145,000 | 11,960,000 | 13,369,000 | 13,257,000 | 12,660,000 | 12,049,000 | 12,198,000 | 12,907,000 | 13,034,000 | 13,425,000 | 13,607,000 |
| Return on total capital | 4.80% | 5.01% | 5.15% | 6.36% | 7.94% | 10.68% | 11.55% | 11.07% | 10.24% | 10.25% | 8.85% | 5.13% | 2.25% | 0.82% | 1.37% | 3.70% | 10.11% | 8.14% | 13.26% | 13.24% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $890,000K ÷ ($7,000,000K + $11,551,000K)
= 4.80%
Corning, Inc.'s return on total capital has shown a decreasing trend over the past eight quarters, starting at 11.40% in Q1 2022 and declining to 4.67% in Q4 2023. This indicates a decline in the company's ability to generate returns from its total capital employed in its operations. The decreasing trend could be attributed to various factors such as changes in the company's profitability, operational efficiency, or capital structure. It is crucial for Corning, Inc. to further analyze the reasons behind this decline and take appropriate measures to improve its return on total capital in the future.
Peer comparison
Dec 31, 2023