International Flavors & Fragrances Inc (IFF)

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 -2,110,000 -1,326,000 585,000 566,000 665,000
Long-term debt US$ in thousands 9,186,000 10,373,000 10,768,000 3,779,000 3,997,440
Total stockholders’ equity US$ in thousands 14,611,000 17,655,000 21,082,000 6,310,000 6,217,300
Return on total capital -8.87% -4.73% 1.84% 5.61% 6.51%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-2,110,000K ÷ ($9,186,000K + $14,611,000K)
= -8.87%

The return on total capital for International Flavors & Fragrances Inc. has exhibited a declining trend over the past five years, from 6.58% in 2019 to 2.34% in 2023. This indicates a decrease in the company's ability to generate profits from the total capital employed in its operations. The drop in the return on total capital could be a cause for concern as it suggests a decline in the efficiency and profitability of the company's capital utilization. Further analysis is warranted to determine the factors contributing to this downward trend and to identify potential strategies for improvement in the utilization of capital to enhance overall financial performance.


Peer comparison

Dec 31, 2023