Leidos Holdings Inc (LDOS)
Return on total capital
| Dec 31, 2024 | Sep 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 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,713,000 | 956,000 | 771,000 | 621,000 | 525,000 | 1,142,000 | 1,082,000 | 1,088,000 | 1,093,000 | 1,117,000 | 1,115,000 | 1,152,000 | 1,181,000 | 1,134,000 | 1,114,000 | 998,000 | 960,000 | 951,000 | 912,000 | 912,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,412,000 | 4,614,000 | 4,258,000 | 4,201,000 | 4,146,000 | 4,597,000 | 4,409,000 | 4,299,000 | 4,086,000 | 4,004,000 | 3,955,000 | 4,291,000 | 4,115,000 | 4,099,000 | 3,933,000 | 3,862,000 | 3,706,000 | 3,538,000 | 3,355,000 | 3,413,000 |
| Return on total capital | 38.83% | 20.72% | 18.11% | 14.78% | 12.66% | 24.84% | 24.54% | 25.31% | 26.75% | 27.90% | 28.19% | 26.85% | 28.70% | 27.67% | 28.32% | 25.84% | 25.90% | 26.88% | 27.18% | 26.72% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,713,000K ÷ ($—K + $4,412,000K)
= 38.83%
Leidos Holdings Inc's return on total capital has exhibited variability over the past few years, ranging from a low of 12.66% on September 30, 2023, to a high of 38.83% on December 31, 2024. The return on total capital is a key metric that reflects how efficiently the company is utilizing its capital to generate profits.
The trend in Leidos Holdings Inc's return on total capital shows fluctuations but generally indicates a strong performance in recent periods, with consistent values above 24%. The company experienced a peak in performance on December 31, 2024, where the return reached 38.83%, reflecting a significant improvement in capital utilization and profitability.
However, it is worth noting that there was a slight decline in the return on total capital in the most recent quarter, dropping from 28.19% on March 31, 2022, to 24.54% on March 31, 2023. This decrease may warrant further investigation to understand the factors impacting the company's capital efficiency during this period.
Overall, Leidos Holdings Inc's return on total capital has demonstrated solid financial performance, with an upward trend in recent periods, indicating effective management of capital resources to drive profitability. It will be crucial for stakeholders to monitor the company's capital efficiency closely to assess its long-term sustainability and growth potential.
Peer comparison
Dec 31, 2024