Newmont Goldcorp Corp (NEM)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,916,000 | -216,000 | -1,081,000 | -1,871,000 | -1,788,000 | -97,000 | -92,000 | 24,000 | 110,000 | 310,000 | 23,000 | 571,000 | 700,000 | 2,837,000 | 3,794,000 | 3,289,000 | 3,331,000 | 3,028,000 | 4,928,000 | 4,522,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 29,928,000 | 29,712,000 | 29,379,000 | 28,890,000 | 29,027,000 | 19,074,000 | 19,225,000 | 19,377,000 | 19,354,000 | 21,219,000 | 21,421,000 | 21,449,000 | 22,022,000 | 22,712,000 | 23,239,000 | 23,127,000 | 23,008,000 | 22,661,000 | 22,004,000 | 21,806,000 |
| Return on total capital | 16.43% | -0.73% | -3.68% | -6.48% | -6.16% | -0.51% | -0.48% | 0.12% | 0.57% | 1.46% | 0.11% | 2.66% | 3.18% | 12.49% | 16.33% | 14.22% | 14.48% | 13.36% | 22.40% | 20.74% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,916,000K ÷ ($—K + $29,928,000K)
= 16.43%
Newmont Goldcorp Corp's return on total capital has shown significant fluctuations over the reporting periods analyzed. The return on total capital was stable and relatively high in the first half of 2020, ranging between 20.74% and 22.40%. However, in the second half of 2020, there was a notable decrease in the return on total capital, dropping to a range of 13.36% to 14.48%.
Throughout 2021 and the first half of 2022, the return on total capital continued to decline steadily, reaching a low of 0.11% by June 30, 2022. The trend reversed in the second half of 2022 and into 2023, with the return on total capital recovering to positive territory, albeit at modest levels.
By the end of 2024, there was a significant improvement in the return on total capital, reaching 16.43%. It is essential to closely monitor this ratio in future periods to assess the company's capital utilization efficiency and profitability.