Huntington Ingalls Industries Inc (HII)
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 | 738,000 | 948,000 | 821,000 | 711,000 | 924,000 |
| Long-term debt | US$ in thousands | 3,110,000 | 2,214,000 | 2,506,000 | 3,298,000 | 1,686,000 |
| Total stockholders’ equity | US$ in thousands | 4,666,000 | 4,093,000 | 3,489,000 | 2,808,000 | 1,901,000 |
| Return on total capital | 9.49% | 15.03% | 13.69% | 11.64% | 25.76% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $738,000K ÷ ($3,110,000K + $4,666,000K)
= 9.49%
Huntington Ingalls Industries Inc's return on total capital has shown some fluctuations over the years. Starting from 25.76% as of December 31, 2020, it decreased to 11.64% by December 31, 2021, indicating a significant drop in profitability. However, the company managed to improve its return on total capital to 13.69% by December 31, 2022, and further to 15.03% by December 31, 2023, which suggests a recovery in the company's efficiency in utilizing its total capital.
Despite this recovery, there was a slight decline in the return on total capital to 9.49% by December 31, 2024. This downward trend in the most recent year may raise some concerns about the company's ability to maintain its profitability levels. Overall, it is important for investors and stakeholders to closely monitor Huntington Ingalls Industries Inc's strategies and operational performance to ensure sustained improvements in its return on total capital in the future.
Peer comparison
Dec 31, 2024