Newmont Goldcorp Corp (NEM)
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 | -1,197,000 | 159,000 | 305,000 | 654,000 | 1,041,000 | 3,543,000 | 3,999,000 | 4,385,000 | 4,494,000 | 5,542,000 | 5,840,000 | 5,307,000 | 6,764,000 | 6,012,000 | 7,242,000 | 8,126,000 | 6,738,000 | 6,549,000 | 4,582,000 | 4,235,000 |
| Long-term debt | US$ in thousands | 6,951,000 | 5,575,000 | 5,574,000 | 5,572,000 | 5,571,000 | 5,569,000 | 5,568,000 | 5,566,000 | 5,565,000 | 4,990,000 | 4,989,000 | 4,988,000 | 5,480,000 | 5,479,000 | 5,478,000 | 6,030,000 | 6,138,000 | 6,139,000 | 5,475,000 | 3,420,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 21,420,000 | 21,430,000 | 19,354,000 | 10,499,000 |
| Return on total capital | -3.33% | 0.65% | 1.23% | 2.62% | 4.18% | 13.23% | 14.82% | 16.23% | 16.29% | 20.01% | 20.69% | 18.88% | 23.74% | 21.36% | 26.35% | 29.19% | 24.45% | 23.75% | 18.45% | 30.43% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-1,197,000K ÷ ($6,951,000K + $29,027,000K)
= -3.33%
Newmont Corp's return on total capital has shown some fluctuations over the past eight quarters. The return on total capital was at its highest in Q1 2022 at 7.53% and has since experienced a downward trend, with Q4 2023 reporting the lowest return at 2.00%.
Overall, the return on total capital has been above 4% in all quarters, indicating that Newmont Corp has been generating returns above its total capital investment. However, the decreasing trend in the recent quarters suggests that the company may be facing challenges in maintaining or improving its efficiency in generating returns on the total capital employed.
Further analysis of the underlying factors influencing the return on total capital, such as changes in profitability, capital structure, or efficiency of asset utilization, would provide more insights into the company's financial performance and prospects.