KBR Inc (KBR)
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 | 662,000 | -55,000 | 369,000 | 218,000 | 37,000 |
| Long-term debt | US$ in thousands | 2,533,000 | 1,801,000 | 1,376,000 | 1,875,000 | 1,584,000 |
| Total stockholders’ equity | US$ in thousands | 1,453,000 | 1,383,000 | 1,620,000 | 1,669,000 | 1,580,000 |
| Return on total capital | 16.61% | -1.73% | 12.32% | 6.15% | 1.17% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $662,000K ÷ ($2,533,000K + $1,453,000K)
= 16.61%
KBR Inc's return on total capital has displayed significant fluctuations over the years. The ratio stood at 1.17% on December 31, 2020, indicating a relatively low return. However, there was a substantial improvement by December 31, 2021, with the return increasing to 6.15%. The following year, December 31, 2022, saw a notable surge in the return on total capital to 12.32%, reflecting a positive trend for the company.
Unfortunately, by December 31, 2023, there was a decline in the return on total capital to -1.73%, indicating a negative return which requires attention to understand the underlying causes. However, KBR Inc managed to bounce back strongly by December 31, 2024, achieving a significant return on total capital of 16.61%. This positive performance suggests effective capital management and utilization by the company in that year. Overall, the varying trends in return on total capital highlight the importance of monitoring and analyzing financial performance metrics over time.
Peer comparison
Dec 31, 2024