Newell Brands Inc (NWL)

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	35,000	-85,000	826,000	1,121,000	-725,000
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,751,000	3,112,000	3,519,000	4,091,000	3,874,000
Return on total capital		1.27%	-2.73%	23.47%	27.40%	-18.71%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $35,000K ÷ ($—K + $2,751,000K)
= 1.27%

Newell Brands Inc's return on total capital has displayed significant fluctuations over the years based on the provided data. The ratio was -18.71% as of December 31, 2020, indicating a negative return on the company's total capital. However, there was a notable improvement in the following years, with returns of 27.40% as of December 31, 2021, and 23.47% as of December 31, 2022, reflecting strong performance in utilizing its total capital effectively.

Subsequently, there was a decline in the return on total capital, with a negative figure of -2.73% as of December 31, 2023, indicating potential challenges or inefficiencies in capital allocation during that period. However, there was a modest recovery with a return of 1.27% as of December 31, 2024.

Overall, Newell Brands Inc's return on total capital has shown variability, with periods of both positive and negative returns. It is essential for the company to closely monitor and assess the factors influencing these fluctuations to enhance capital efficiency and long-term financial performance.