KBR Inc (KBR)
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 | -55,000 | -3,000 | 89,000 | 543,000 | 369,000 | 365,000 | 338,000 | 101,000 | 218,000 | 128,000 | 120,000 | 195,000 | 28,000 | 75,000 | 91,000 | 197,000 | 360,000 | 360,000 | 351,000 | 338,000 |
| Long-term debt | US$ in thousands | 1,801,000 | 1,516,000 | 1,628,000 | 1,374,000 | 1,376,000 | 1,722,000 | 1,746,000 | 1,870,000 | 1,875,000 | 1,578,000 | 1,585,000 | 1,586,000 | 1,584,000 | 1,314,000 | 1,065,000 | 1,053,000 | 1,183,000 | 1,185,000 | 1,188,000 | 1,223,000 |
| Total stockholders’ equity | US$ in thousands | 1,383,000 | 1,554,000 | 1,615,000 | 1,644,000 | 1,620,000 | 1,563,000 | 1,586,000 | 1,564,000 | 1,669,000 | 1,486,000 | 1,469,000 | 1,646,000 | 1,580,000 | 1,688,000 | 1,615,000 | 1,630,000 | 1,839,000 | 1,797,000 | 1,774,000 | 1,773,000 |
| Return on total capital | -1.73% | -0.10% | 2.74% | 17.99% | 12.32% | 11.11% | 10.14% | 2.94% | 6.15% | 4.18% | 3.93% | 6.03% | 0.88% | 2.50% | 3.40% | 7.34% | 11.91% | 12.07% | 11.85% | 11.28% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-55,000K ÷ ($1,801,000K + $1,383,000K)
= -1.73%
Return on total capital is a measure of a company's ability to generate profits from its invested capital, including both equity and debt. The trend analysis of KBR Inc's return on total capital over the past five quarters shows some fluctuations.
In the most recent quarter, KBR Inc's return on total capital was -1.73%, indicating that the company experienced a negative return on the capital it employed. This could be a red flag for investors as it signifies that the company's profitability may be decreasing relative to the capital invested.
Prior to the latest quarter, KBR Inc's return on total capital had been relatively stable, ranging from negative figures to double-digit percentages. The highest return was seen in March 2023 at 17.99%, indicating strong profitability relative to the total capital employed. However, the company's return on total capital has been gradually declining since that peak.
It is essential for KBR Inc to improve its return on total capital to ensure that the capital invested in the business is being effectively utilized to generate profits. Investors and stakeholders may need to closely monitor the company's financial performance and management strategies to address the declining trend in return on total capital.
Peer comparison
Dec 31, 2023