MasTec Inc (MTZ)
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 | -81,257 | 46,125 | 431,377 | 428,313 | 512,034 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,706,150 | 2,737,330 | 2,539,810 | 2,001,920 | 1,787,220 |
| Return on total capital | -3.00% | 1.69% | 16.98% | 21.40% | 28.65% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-81,257K ÷ ($—K + $2,706,150K)
= -3.00%
MasTec Inc's return on total capital has shown a declining trend over the past five years, starting at 28.65% in 2019 and decreasing to -3.00% in 2023. This negative return on total capital in 2023 indicates that the company's profitability relative to its total capital employed has deteriorated significantly compared to the previous year. The decreasing trend suggests that MasTec Inc may be facing challenges in effectively utilizing its total capital to generate profits, which could be attributed to various factors such as declining revenues, increasing expenses, or inefficient capital allocation strategies. It is essential for the company to closely monitor and address the reasons behind this negative trend to improve its return on total capital and overall financial performance in the future.
Peer comparison
Dec 31, 2023