Kratos Defense & Security Solutions (KTOS)
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 | 44,500 | 34,800 | -14,400 | 28,100 | 30,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,353,200 | 976,000 | 936,300 | 945,100 | 925,300 |
| Return on total capital | 3.29% | 3.57% | -1.54% | 2.97% | 3.29% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $44,500K ÷ ($—K + $1,353,200K)
= 3.29%
The analysis of Kratos Defense & Security Solutions' return on total capital (ROTC) over the period from December 31, 2020, to December 31, 2024, reveals notable fluctuations. In 2020, the ROTC was 3.29%, indicating a modest but positive level of efficiency in generating returns from the total capital employed. The following year, 2021, experienced a slight decline to 2.97%, suggesting a marginal reduction in the company's capacity to generate returns on its total capital basis.
However, the year 2022 marked a significant downturn, with the ROTC turning negative at -1.54%. This negative figure indicates that the company's operations during that year were not profitable in terms of overall capital utilization, likely reflecting operational challenges or investments that did not yield immediate returns. The subsequent year, 2023, shows a strong recovery with the ROTC rising to 3.57%, surpassing the level observed in 2020. This positive shift suggests an improvement in the company's ability to generate returns from its total capital base, possibly due to operational efficiencies, strategic initiatives, or favorable market conditions.
By December 31, 2024, the ROTC stabilizes at 3.29%, close to the 2020 level, indicating a return to a more stable and positive rate of return on total capital. Overall, the company underwent a period of decline and negative returns in 2022, followed by a robust recovery and stabilization in subsequent years, reflecting a resilient but variable performance over the analyzed timeframe.
Peer comparison
Dec 31, 2024