Huntington Ingalls Industries Inc (HII)
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 | 948,000 | 773,000 | 751,000 | 806,000 | 821,000 | 812,000 | 788,000 | 719,000 | 711,000 | 887,000 | 975,000 | 886,000 | 924,000 | 765,000 | 728,000 | 820,000 | 753,000 | 796,000 | 889,000 | 984,000 |
| Long-term debt | US$ in thousands | 2,214,000 | 2,213,000 | 2,396,000 | 2,498,000 | 2,506,000 | 2,605,000 | 3,102,000 | 3,200,000 | 3,298,000 | 3,321,000 | 1,689,000 | 1,688,000 | 1,686,000 | 2,278,000 | 2,276,000 | 1,667,000 | 1,286,000 | 1,549,000 | 1,698,000 | 1,496,000 |
| Total stockholders’ equity | US$ in thousands | 4,093,000 | 3,733,000 | 3,646,000 | 3,563,000 | 3,489,000 | 3,048,000 | 2,952,000 | 2,822,000 | 2,808,000 | 2,189,000 | 2,067,000 | 1,979,000 | 1,901,000 | 1,880,000 | 1,678,000 | 1,643,000 | 1,588,000 | 1,705,000 | 1,628,000 | 1,563,000 |
| Return on total capital | 15.03% | 13.00% | 12.43% | 13.30% | 13.69% | 14.36% | 13.02% | 11.94% | 11.64% | 16.10% | 25.96% | 24.16% | 25.76% | 18.40% | 18.41% | 24.77% | 26.20% | 24.46% | 26.73% | 32.17% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $948,000K ÷ ($2,214,000K + $4,093,000K)
= 15.03%
The return on total capital for Huntington Ingalls Industries Inc has exhibited a relatively stable trend over the past eight quarters, ranging from 8.15% to 10.11%. The Q4 2023 return on total capital of 10.11% represents an improvement compared to the previous quarter, where it was 9.24%.
Overall, the company has been able to generate consistent returns on its total capital, indicating efficient utilization of both debt and equity in generating profits. This stable performance suggests that Huntington Ingalls Industries Inc's capital allocation strategies are effective in generating returns for its investors. However, the company may still seek opportunities to further optimize its capital structure to potentially enhance its return on total capital in the future.
Peer comparison
Dec 31, 2023