Leidos Holdings Inc (LDOS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 621,000 | 1,088,000 | 1,146,000 | 962,000 | 1,010,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,201,000 | 4,299,000 | 4,291,000 | 3,862,000 | 3,413,000 |
| Return on total capital | 14.78% | 25.31% | 26.71% | 24.91% | 29.59% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $621,000K ÷ ($—K + $4,201,000K)
= 14.78%
The return on total capital for Leidos Holdings Inc has shown some fluctuations over the past five years. In 2019, the return on total capital was at its highest at 29.59%, indicating efficient utilization of both equity and debt capital to generate profits. However, there was a slight decrease in the ratio in 2020 to 24.91%, before showing a further decline in 2021 to 26.71%. In 2022, there was a noticeable increase in the return on total capital to 25.31%, but still below the levels seen in 2019. Finally, in 2023, the return on total capital continued to improve but remained below the peak, reaching 14.78%.
Overall, the trend in the return on total capital for Leidos Holdings Inc highlights a mix of performance levels over the years, with some fluctuations and variations. It is essential for the company to maintain a sustainable level of return on total capital to ensure efficient utilization of resources and ongoing profitability.
Peer comparison
Dec 31, 2023