Kenvue Inc. (KVUE)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,440,000 | |||
| Long-term debt | US$ in thousands | 8,000,000 | 7,400,000 | 7,800,000 | 8,000,000 |
| Total stockholders’ equity | US$ in thousands | 11,211,000 | 10,893,000 | 11,131,000 | 20,282,000 |
| Return on total capital | 12.70% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,440,000K ÷ ($8,000,000K + $11,211,000K)
= 12.70%
The return on total capital for Kenvue Inc. as of December 31, 2023, was reported at 12.70%. This ratio measures the efficiency and profitability of the company in generating returns from all of its invested capital, both debt and equity.
The trend of the return on total capital over the last four quarters indicates consistent performance in utilizing the capital effectively to generate profits. A return on total capital of 12.70% suggests that for every dollar of capital invested in the company, it generated a return of 12.70 cents.
Overall, a return on total capital of 12.70% demonstrates Kenvue Inc.'s ability to generate a satisfactory return for its investors and creditors, and it is important to monitor this ratio over time to assess the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023