Leidos Holdings Inc (LDOS)
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 | 1,827,000 | 621,000 | 1,088,000 | 1,146,000 | 962,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,412,000 | 4,201,000 | 4,299,000 | 4,291,000 | 3,862,000 |
| Return on total capital | 41.41% | 14.78% | 25.31% | 26.71% | 24.91% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,827,000K ÷ ($—K + $4,412,000K)
= 41.41%
Leidos Holdings Inc's return on total capital has shown variability over the years. The return on total capital increased from 24.91% as of December 31, 2020, to 26.71% by December 31, 2021, indicating improved efficiency in generating profits relative to the total capital employed.
However, this positive trend was not sustained, as the return on total capital declined to 25.31% by December 31, 2022. The company experienced a notable decrease in performance by December 31, 2023, with the return on total capital dropping to 14.78%.
Nevertheless, Leidos Holdings Inc rebounded strongly in the following year, achieving a significant increase in return on total capital to 41.41% by December 31, 2024. This spike suggests a substantial improvement in the company's ability to generate earnings in relation to its total capital base.
Overall, while there were fluctuations in Leidos Holdings Inc's return on total capital over the period, the company managed to finish on a high note with a substantial increase in efficiency in converting capital into profits by the end of 2024.
Peer comparison
Dec 31, 2024