Newmont Goldcorp Corp (NEM)
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 | -1,847,000 | 129,000 | 2,338,000 | 3,594,000 | 3,697,000 |
| Long-term debt | US$ in thousands | 6,951,000 | 5,571,000 | 5,565,000 | 5,480,000 | 6,138,000 |
| Total stockholders’ equity | US$ in thousands | 29,027,000 | 19,354,000 | 22,022,000 | 23,008,000 | 21,420,000 |
| Return on total capital | -5.13% | 0.52% | 8.48% | 12.62% | 13.42% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,847,000K ÷ ($6,951,000K + $29,027,000K)
= -5.13%
Newmont Corp's return on total capital has exhibited a downward trend over the past five years, declining from 5.92% in 2019 to 2.00% in 2023. This indicates a decreasing efficiency in generating returns relative to the total capital employed by the company. The sharp decrease in 2023 compared to the previous years suggests potential challenges in effectively utilizing its capital resources to generate profits. Further analysis of Newmont Corp's operational and financial performance is recommended to identify the reasons behind this declining trend in return on total capital.