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.
Peer comparison
Dec 31, 2023