Hasbro Inc (HAS)
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 | -1,524,300 | 433,000 | 755,000 | 520,300 | 696,200 |
| Long-term debt | US$ in thousands | 2,965,800 | 3,711,200 | 3,824,200 | 4,660,000 | 4,046,460 |
| Total stockholders’ equity | US$ in thousands | 1,087,000 | 2,861,900 | 3,087,000 | 2,961,100 | 2,995,530 |
| Return on total capital | -37.61% | 6.59% | 10.92% | 6.83% | 9.89% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,524,300K ÷ ($2,965,800K + $1,087,000K)
= -37.61%
Return on total capital is a key financial ratio that indicates how efficiently a company generates profits from its total capital employed, including both debt and equity. In the case of Hasbro, Inc., the trend in return on total capital over the past five years shows some fluctuations.
In 2023, Hasbro's return on total capital decreased to 4.23% from 6.32% in 2022. This decline may signify a decrease in profitability relative to the capital invested in the business. However, it is important to note that the current return on total capital is still above the level observed in 2020.
In 2021, Hasbro achieved a relatively high return on total capital of 12.37%, indicating strong efficiency in turning capital into profits. This marked a significant improvement from the previous year's return of 8.96% but slightly below the 2019 level of 9.26%.
Overall, the trend in Hasbro's return on total capital suggests some variability in the company's ability to generate returns from its total capital base. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and efficiency in utilizing its capital resources.