Masco Corporation (MAS)
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 | 1,292,000 | 1,240,000 | 898,000 | 1,637,000 | 1,324,000 |
| Long-term debt | US$ in thousands | 2,945,000 | 2,946,000 | 2,949,000 | 2,792,000 | 2,771,000 |
| Total stockholders’ equity | US$ in thousands | -126,000 | -480,000 | -179,000 | 195,000 | -235,000 |
| Return on total capital | 45.83% | 50.28% | 32.42% | 54.80% | 52.21% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,292,000K ÷ ($2,945,000K + $-126,000K)
= 45.83%
Masco Corp. has consistently maintained a strong return on total capital over the past five years, ranging from 43.26% in 2019 to 52.55% in 2021. This indicates that the company has been efficient in generating profits relative to the total capital employed in its operations. The decreasing trend in return on total capital from 2021 to 2023 may suggest a potential decrease in the company's profitability relative to its invested capital during this period. However, Masco Corp. still demonstrates a high level of financial performance and effective capital utilization, as evidenced by the return on total capital figures exceeding 40% in each year. It is advisable for stakeholders to further analyze the underlying factors affecting the company's return on total capital to make informed decisions regarding its financial health and strategic direction.
Peer comparison
Dec 31, 2023