Newmont Goldcorp Corp (NEM)
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 | 4,962,000 | -1,788,000 | 176,000 | 1,374,000 | 3,434,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 30,109,000 | 29,027,000 | 19,354,000 | 22,022,000 | 23,008,000 |
| Return on total capital | 16.48% | -6.16% | 0.91% | 6.24% | 14.93% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,962,000K ÷ ($—K + $30,109,000K)
= 16.48%
Newmont Goldcorp Corp's return on total capital has exhibited fluctuating performance over the years. As of December 31, 2020, the return on total capital stood at 14.93%, indicating a healthy profitability relative to its total capital employed. However, there was a notable decline in performance by December 31, 2021, with a decrease to 6.24%.
By December 31, 2022, the return on total capital dropped further to 0.91%, suggesting a significant challenge in generating returns relative to the capital invested. The following year, December 31, 2023, saw a negative return on total capital of -6.16%, indicating that the company was not effectively utilizing its capital to generate profits.
The performance improved significantly by December 31, 2024, with a return on total capital of 16.48%, surpassing the initial level seen in 2020. This positive trend suggests a potential recovery in the company's profitability and efficiency in utilizing its total capital.
Overall, Newmont Goldcorp Corp's return on total capital has experienced fluctuations, highlighting the importance of closely monitoring and analyzing its financial performance to ensure sustainable profitability and effective capital allocation.