Newell Brands Inc (NWL)
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 | -260,000 | 392,000 | 1,016,000 | -727,000 | -628,000 |
| Long-term debt | US$ in thousands | 4,575,000 | 4,756,000 | 4,883,000 | 5,141,000 | 5,391,000 |
| Total stockholders’ equity | US$ in thousands | 3,112,000 | 3,519,000 | 4,158,000 | 3,874,000 | 4,963,000 |
| Return on total capital | -3.38% | 4.74% | 11.24% | -8.06% | -6.07% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-260,000K ÷ ($4,575,000K + $3,112,000K)
= -3.38%
Newell Brands Inc's return on total capital has exhibited a declining trend over the past five years, starting at 7.19% in 2019 and dropping to 4.39% in 2023. The company's return on total capital peaked at 11.38% in 2021. This indicates that the company may be facing challenges in generating returns on the total capital employed in its operations. Further analysis of the factors affecting the return on total capital, such as profitability, efficiency, and capital structure, would be necessary to understand the underlying reasons for this trend.
Peer comparison
Dec 31, 2023