Masco Corporation (MAS)
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 | 1,363,000 | 1,292,000 | 1,240,000 | 898,000 | 1,637,000 |
| Long-term debt | US$ in thousands | 2,945,000 | 2,945,000 | 2,946,000 | 2,949,000 | 2,792,000 |
| Total stockholders’ equity | US$ in thousands | -279,000 | -126,000 | -480,000 | -179,000 | 195,000 |
| Return on total capital | 51.13% | 45.83% | 50.28% | 32.42% | 54.80% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,363,000K ÷ ($2,945,000K + $-279,000K)
= 51.13%
Based on the data provided for Masco Corporation's return on total capital, there has been some fluctuation in the company's performance over the years. In 2020, the return on total capital was recorded at a strong 54.80%, indicating that the company was efficiently utilizing its capital to generate profits.
However, there was a decrease in the return on total capital in 2021 to 32.42%, suggesting a potential decrease in profitability or less efficient capital utilization during that year. The following year, in 2022, Masco Corporation saw an improvement in its return on total capital to 50.28%, indicating a recovery or improved performance.
In 2023, the return on total capital slightly decreased to 45.83%, showing some fluctuation in the company's efficiency in generating profits relative to the capital invested. Finally, in 2024, Masco Corporation's return on total capital increased to 51.13%, indicating a potential improvement in profitability and efficient use of capital.
Overall, Masco Corporation's return on total capital has shown variability over the years, with fluctuations in performance and profitability. It is essential for the company to consistently monitor and manage its capital utilization effectively to sustain and improve its financial performance in the long run.
Peer comparison
Dec 31, 2024