KBR Inc (KBR)
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 | -55,000 | 369,000 | 218,000 | 37,000 | 360,000 |
| Long-term debt | US$ in thousands | 1,801,000 | 1,376,000 | 1,875,000 | 1,584,000 | 1,183,000 |
| Total stockholders’ equity | US$ in thousands | 1,383,000 | 1,620,000 | 1,669,000 | 1,580,000 | 1,839,000 |
| Return on total capital | -1.73% | 12.32% | 6.15% | 1.17% | 11.91% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-55,000K ÷ ($1,801,000K + $1,383,000K)
= -1.73%
Based on the data provided, KBR Inc's return on total capital has exhibited significant variation over the past five years. The return on total capital was negative at -1.73% in 2023, indicating that the company's total capital generated a return lower than the cost of capital. This could be concerning as the company may not be efficiently utilizing its capital to generate profits.
In contrast, the return on total capital was relatively higher in 2022 at 12.32%, which suggests that the company was able to generate a respectable return on its total capital investment compared to the previous years. This could indicate effective capital allocation and profitability in that particular year.
Similarly, in 2021, the return on total capital was 6.15%, showing a moderate level of return on the capital employed by the company. This indicates that KBR Inc was able to generate a reasonable return on its total capital investment relative to the previous years.
In 2020, the return on total capital was 1.17%, which is lower compared to the previous years. This could suggest potential challenges or inefficiencies in capital utilization during that period.
Lastly, in 2019, the return on total capital was relatively high at 11.91%, indicating that the company was able to generate a significant return on its total capital investment, reflecting strong performance and efficient capital management in that year.
Overall, the fluctuation in KBR Inc's return on total capital over the past five years highlights the importance of closely monitoring and analyzing the company's capital utilization and profitability trends to assess its financial performance and sustainability.
Peer comparison
Dec 31, 2023