International Flavors & Fragrances Inc (IFF)

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	-2,079,000	562,000	-1,559,000	-1,520,000	-1,289,000	-1,221,000	1,054,000	968,000	622,000	549,000	367,000	383,000	556,000	572,529	621,209	685,791	672,554	661,128	598,064	573,646
Long-term debt	US$ in thousands	9,186,000	9,159,000	9,208,000	9,220,000	10,373,000	10,260,000	10,363,000	10,738,000	10,768,000	10,818,000	11,354,000	11,330,000	3,779,000	3,890,760	4,181,700	3,946,900	3,997,440	4,008,130	4,428,680	4,421,430
Total stockholders’ equity	US$ in thousands	14,611,000	16,978,000	17,623,000	17,758,000	17,655,000	16,887,000	20,260,000	20,933,000	21,082,000	21,426,000	21,761,000	21,642,000	6,310,000	6,078,210	5,987,800	5,827,850	6,217,300	6,055,820	6,199,380	6,143,210
Return on total capital		-8.74%	2.15%	-5.81%	-5.63%	-4.60%	-4.50%	3.44%	3.06%	1.95%	1.70%	1.11%	1.16%	5.51%	5.74%	6.11%	7.02%	6.58%	6.57%	5.63%	5.43%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-2,079,000K ÷ ($9,186,000K + $14,611,000K)
= -8.74%

International Flavors & Fragrances Inc. has shown a declining trend in its return on total capital over the past eight quarters. The return on total capital was highest in Q4 2022 at 4.06% and has decreased steadily since then. In Q4 2023, the return on total capital was the lowest at 2.34%. This downward trend indicates that the company's ability to generate profits from its total capital employed has been weakening. It is important for the company to closely monitor and address this trend to ensure efficient utilization of its capital and improve overall financial performance.