Newell Brands Inc (NWL)

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	-260,000	-432,000	-187,000	9,000	392,000	828,000	1,127,000	1,152,000	1,016,000	1,021,000	1,060,000	892,000	-727,000	-759,000	-1,991,000	-1,924,000	-492,000	-507,800	-7,464,900	-7,612,000
Long-term debt	US$ in thousands	4,575,000	4,737,000	4,753,000	4,776,000	4,756,000	4,762,000	3,793,000	4,880,000	4,883,000	4,884,000	4,885,000	5,135,000	5,141,000	5,794,000	5,781,000	5,375,000	5,391,000	5,691,700	6,707,800	6,694,600
Total stockholders’ equity	US$ in thousands	3,112,000	3,126,000	3,315,000	3,333,000	3,519,000	3,855,000	4,022,000	4,047,000	4,158,000	4,055,000	3,986,000	3,836,000	3,874,000	3,726,000	3,492,000	3,454,000	4,963,000	4,137,600	4,969,200	4,948,400
Return on total capital		-3.38%	-5.49%	-2.32%	0.11%	4.74%	9.61%	14.42%	12.90%	11.24%	11.42%	11.95%	9.94%	-8.06%	-7.97%	-21.47%	-21.79%	-4.75%	-5.17%	-63.93%	-65.38%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-260,000K ÷ ($4,575,000K + $3,112,000K)
= -3.38%

The return on total capital for Newell Brands Inc has shown a declining trend over the past eight quarters. From a high of 11.81% in Q1 2022, the return on total capital has decreased to 4.39% in Q4 2023. This downward trend indicates that the company's ability to generate profits from its total capital investment has been weakening. It may suggest inefficiency in capital utilization or a decrease in profitability relative to the capital employed. Further analysis and comparison with industry benchmarks are recommended to gain a deeper understanding of the factors driving this decline in return on total capital.