International Flavors & Fragrances Inc (IFF)
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 | 583,000 | -2,138,000 | -1,289,000 | 642,000 | 572,315 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 13,876,000 | 14,611,000 | 17,734,000 | 21,118,000 | 6,323,040 |
| Return on total capital | 4.20% | -14.63% | -7.27% | 3.04% | 9.05% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $583,000K ÷ ($—K + $13,876,000K)
= 4.20%
International Flavors & Fragrances Inc's return on total capital has exhibited fluctuations over the last five years. Starting at 9.05% on December 31, 2020, the return decreased to 3.04% by December 31, 2021. The trend took a sharp downturn in the subsequent years, with -7.27% on December 31, 2022, -14.63% on December 31, 2023. However, there was a slight recovery noted at the end of the period with a return of 4.20% by December 31, 2024. This erratic performance suggests that the company faced challenges in generating returns compared to the total capital employed, and it will be important to closely monitor future developments to assess the sustainability of its capital utilization strategy.
Peer comparison
Dec 31, 2024