MasTec Inc (MTZ)
Return on total capital
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,010,516 | -989,386 | -906,542 | -923,025 | -830,350 | -620,160 | -528,005 | -381,745 | -110,128 | 262,212 | 312,342 | 296,110 | 234,795 | 195,295 | 278,639 | 2,110,125 | 3,562,812 | 5,109,912 | 6,777,770 | 6,461,110 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,706,150 | 2,703,340 | 2,679,050 | 2,646,300 | 2,737,330 | 2,542,070 | 2,480,830 | 2,508,010 | 2,539,810 | 2,273,180 | 2,158,360 | 2,084,910 | 2,001,920 | 1,873,340 | 1,746,710 | 1,685,510 | 1,787,220 | 1,674,600 | 1,548,120 | 1,431,610 |
| Return on total capital | -37.34% | -36.60% | -33.84% | -34.88% | -30.33% | -24.40% | -21.28% | -15.22% | -4.34% | 11.54% | 14.47% | 14.20% | 11.73% | 10.42% | 15.95% | 125.19% | 199.35% | 305.14% | 437.81% | 451.32% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-1,010,516K ÷ ($—K + $2,706,150K)
= -37.34%
MasTec Inc's return on total capital has been volatile over the past several quarters, ranging from a negative of -37.34% to a high positive of 451.32%. The company experienced a significant decline in return on total capital in the recent quarters, from positive levels in 2019 and early 2020 to negative levels in 2023.
The negative return on total capital in the latest quarters indicates that MasTec Inc has not been effectively utilizing its total capital resources to generate profits. This could be a result of lower profitability, inefficient capital allocation, or potentially high levels of debt impacting the returns.
It is important for MasTec Inc to analyze the factors contributing to this decline and take necessary steps to improve its return on total capital in order to enhance shareholder value and ensure long-term financial sustainability.
Peer comparison
Dec 31, 2023