Resideo Technologies Inc (REZI)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 547,000 | 498,000 | 500,000 | 492,000 | 486,000 | 501,000 | 499,000 | 447,000 | 401,000 | 399,000 | 386,000 | 258,000 | 164,000 | 61,000 | -11,000 | 31,000 | 140,000 | 188,000 | 148,000 |
| Long-term debt | US$ in thousands | 1,396,000 | 1,397,000 | 1,400,000 | 1,402,000 | 1,404,000 | 1,407,000 | 1,410,000 | 1,412,000 | 1,220,000 | 1,222,000 | 1,184,000 | 1,186,000 | 1,155,000 | 1,141,000 | 1,140,000 | 1,149,000 | 1,158,000 | 1,165,000 | 1,169,000 |
| Total stockholders’ equity | US$ in thousands | 2,749,000 | 2,645,000 | 2,677,000 | 2,604,000 | 2,529,000 | 2,400,000 | 2,394,000 | 2,361,000 | 2,252,000 | 2,158,000 | 2,103,000 | 2,032,000 | 1,993,000 | 1,605,000 | 1,495,000 | 1,521,000 | 1,602,000 | 1,573,000 | 1,593,000 |
| Return on total capital | 13.20% | 12.32% | 12.26% | 12.28% | 12.36% | 13.16% | 13.12% | 11.85% | 11.55% | 11.80% | 11.74% | 8.02% | 5.21% | 2.22% | -0.42% | 1.16% | 5.07% | 6.87% | 5.36% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $547,000K ÷ ($1,396,000K + $2,749,000K)
= 13.20%
The return on total capital for Resideo Technologies Inc has been relatively stable over the past eight quarters, ranging from 12.00% to 14.61%. This indicates that the company has been able to generate a consistent level of returns for its capital providers. While there was a slight decrease in the return on total capital from Q1 2023 to Q4 2023, the overall trend shows a strong performance in utilizing the capital effectively to generate profits. Additionally, the return on total capital has been above 12% in all quarters, suggesting that the company has been able to maintain efficient operations and generate satisfactory returns on the total capital employed in its business activities.