Newell Brands Inc (NWL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 106,000 | 229,000 | 129,000 | 105,000 | 1,000 | -400,000 | 31,000 | 198,000 | 475,000 | 928,000 | 1,022,000 | 1,005,000 | 982,000 | 1,062,000 | 1,137,000 | 997,000 | -630,000 | -623,000 | -1,666,200 | -1,664,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,751,000 | 2,860,000 | 3,080,000 | 3,076,000 | 3,112,000 | 3,126,000 | 3,315,000 | 3,333,000 | 3,519,000 | 3,776,000 | 3,947,000 | 3,980,000 | 4,091,000 | 4,055,000 | 3,986,000 | 3,836,000 | 3,874,000 | 3,726,000 | 3,492,000 | 3,454,000 |
| Return on total capital | 3.85% | 8.01% | 4.19% | 3.41% | 0.03% | -12.80% | 0.94% | 5.94% | 13.50% | 24.58% | 25.89% | 25.25% | 24.00% | 26.19% | 28.52% | 25.99% | -16.26% | -16.72% | -47.71% | -48.20% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $106,000K ÷ ($—K + $2,751,000K)
= 3.85%
Newell Brands Inc's return on total capital has shown significant fluctuations over the period from March 31, 2020, to December 31, 2024.
The company experienced negative returns in the first half of 2020, with the lowest point in June 2020 at -47.71%. However, there was a notable turnaround starting from the first quarter of 2021, with increasing returns reported in subsequent quarters. The return on total capital improved to positive levels, reaching a peak of 28.52% in June 2021.
The positive trend continued into 2022 and 2023, with returns staying above 20% for several quarters. However, there was a decline in the last quarter of 2023, as the return on total capital dropped to -12.80%.
The company managed to bounce back in the following periods, with returns turning positive again in March 2024. The return on total capital ranged between 3% and 8% in the last few quarters of the data provided, indicating a relatively stable performance in terms of capital efficiency.
Overall, the analysis suggests that Newell Brands Inc has experienced fluctuations in its return on total capital over the period under review, with both negative and positive trends observed. Maintaining positive returns and managing any downturns in the future will be crucial for the company's financial performance.
Peer comparison
Dec 31, 2024