Huntington Ingalls Industries Inc (HII)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 738,000 | 937,000 | 1,013,000 | 966,000 | 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 |
| Long-term debt | US$ in thousands | 3,110,000 | 1,709,000 | 1,715,000 | 2,235,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 4,666,000 | 4,203,000 | 4,178,000 | 4,126,000 | 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 |
| Return on total capital | 9.49% | 15.85% | 17.19% | 15.19% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 experienced fluctuations over the past few years. The ratio stood at 24.77% as of March 31, 2020, indicating a strong performance in utilizing both equity and debt capital to generate profits. However, the ratio decreased to 18.41% by June 30, 2020, before rebounding slightly to 18.40% by September 30, 2020.
There was a significant improvement in the return on total capital by the end of December 31, 2020, reaching 25.76%, showcasing efficient capital utilization during that period. The ratio remained relatively high in the following quarters, with values of 24.16% as of March 31, 2021, and 25.96% by June 30, 2021.
However, there was a noticeable decline in the return on total capital for the subsequent quarters. The ratio dropped to 16.10% by September 30, 2021, and further decreased to 11.64% by December 31, 2021. The trend of decline continued into the first half of 2022, with ratios of 11.94% as of March 31, 2022, and 13.02% by June 30, 2022.
There was a slight improvement in the return on total capital by September 30, 2022, with a ratio of 14.36%, followed by 13.69% by December 31, 2022, and 13.30% as of March 31, 2023. The ratio remained relatively stable around the 13-15% range in the subsequent quarters, with values of 12.43% by June 30, 2023, 13.00% by September 30, 2023, and 15.03% by December 31, 2023.
In the first half of 2024, Huntington Ingalls Industries Inc's return on total capital showed a slight improvement to 15.19% as of March 31, 2024, and further increased to 17.19% by June 30, 2024. However, there was a notable decline in the ratio by the end of September 30, 2024, to 9.49%, indicating a decrease in the efficiency of capital utilization during that period.
Overall, the analysis highlights the variability in Huntington Ingalls Industries Inc's return on total capital over the years, indicating fluctuations in the company's ability to generate profits from the total capital employed.
Peer comparison
Dec 31, 2024