Kratos Defense & Security Solutions (KTOS)
Return on total capital
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 22,800 | 29,800 | 38,200 | 43,500 | 37,900 | 32,000 | 25,600 | 9,000 | 200 | -15,000 | -12,800 | 2,700 | 8,200 | 27,400 | 28,200 | 30,900 | 30,500 | 29,600 | 30,600 | 27,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,387,600 | 1,353,200 | 1,342,900 | 1,329,300 | 1,306,100 | 976,000 | 953,400 | 945,600 | 931,200 | 936,300 | 935,400 | 938,100 | 932,300 | 945,100 | 941,800 | 935,900 | 929,000 | 925,300 | 835,300 | 824,500 |
| Return on total capital | 1.64% | 2.20% | 2.84% | 3.27% | 2.90% | 3.28% | 2.69% | 0.95% | 0.02% | -1.60% | -1.37% | 0.29% | 0.88% | 2.90% | 2.99% | 3.30% | 3.28% | 3.20% | 3.66% | 3.38% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $22,800K ÷ ($—K + $1,387,600K)
= 1.64%
The analysis of Kratos Defense & Security Solutions' return on total capital (ROTC) over the observed period reveals notable fluctuations and trends. Initially, the ROTC displayed a relatively stable performance, with values ranging from 3.38% on June 30, 2020, to a peak of 3.66% on September 30, 2020. Subsequently, there was a slight decline, with the percentage decreasing to 3.20% by December 31, 2020, before marginally increasing again to 3.28% in the first quarter of 2021.
During 2021, the ROTC remained relatively steady, with values around 2.90% to 3.30%, although a small decline was observed, reaching 2.90% by the end of that year. In 2022, a significant downward trend commenced, with the ROTC dropping sharply from 0.88% in the first quarter to negative territory at -1.37% on September 30, 2022, and further to -1.60% by year-end, indicating a period of reduced profitability and increased challenges in generating returns from total capital employed.
The early part of 2023 marks a recovery phase, with the ROTC rebounding to 0.02% in March and subsequently increasing to 0.95% in June, and reaching 2.69% on September 30, 2023. This upward movement suggests an improvement in operational efficiency or profitability, with the ratio approaching positive territory after a period of negative performance.
By the end of 2023, the ROTC resumed its upward trend, reaching 3.28% on December 31. In 2024, fluctuations persisted, with the ROTC slightly declining to 2.90% in the first quarter, followed by minor variations through June (3.27%) and September (2.84%). The latest data for December 2024 shows the ratio at 2.20%, while the first quarter of 2025 indicates a decline to 1.64%.
Overall, the historical data depict a trajectory of initial stability, a severe decline during 2022, followed by a gradual recovery starting in early 2023. The recent figures suggest that Kratos has been able to regain profitability from its total capital, although the ratios remain below their initial highs and have exhibited periods of volatility, reflecting underlying operational or market challenges over the period analyzed.
Peer comparison
Mar 31, 2025