Hasbro Inc (HAS)
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 | 668,200 | -1,522,800 | 432,500 | 761,600 | 523,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,185,000 | 1,061,900 | 2,861,900 | 3,063,100 | 2,936,740 |
| Return on total capital | 56.39% | -143.40% | 15.11% | 24.86% | 17.82% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $668,200K ÷ ($—K + $1,185,000K)
= 56.39%
The return on total capital for Hasbro Inc has shown fluctuating trends over the past five years. As of December 31, 2020, the return on total capital was 17.82%, indicating that the company generated a respectable return on its invested capital. By December 31, 2021, the return on total capital improved significantly to 24.86%, reflecting an even higher level of efficiency in utilizing its total capital.
However, there was a notable decrease in the return on total capital by December 31, 2022, dropping to 15.11%. This suggests a decrease in the company's ability to generate returns relative to its total invested capital. The most concerning observation is for December 31, 2023, where the return on total capital was -143.40%, which is aberrant and indicates a significant negative return – a situation that warrants further investigation into the underlying factors causing this anomaly.
Fortunately, by December 31, 2024, Hasbro Inc managed to turn around its performance significantly, achieving a return on total capital of 56.39%. This sharp increase points to a resurgence in the company's ability to generate returns from its total capital, potentially driven by strategic decisions or operational improvements.
In summary, the return on total capital for Hasbro Inc has shown variability over the past five years, with notable improvements and concerning declines. It is vital for stakeholders to closely monitor these fluctuations and the factors influencing them to assess the company's overall performance and financial health accurately.