Resideo Technologies Inc (REZI)
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 | 410,000 | 495,000 | 571,000 | 593,000 | 598,000 | 614,000 | 578,000 | 609,000 | 601,000 | 542,000 | 598,000 | 505,000 | 459,000 | 536,000 | 465,000 | 337,000 | 243,000 | 534,000 | 462,000 | 504,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,309,000 | 3,354,000 | 3,294,000 | 2,769,000 | 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 |
| Return on total capital | 12.39% | 14.76% | 17.33% | 21.42% | 21.75% | 23.21% | 21.59% | 23.39% | 23.76% | 22.58% | 24.98% | 21.39% | 20.38% | 24.84% | 22.11% | 16.58% | 12.19% | 33.27% | 30.90% | 33.14% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $410,000K ÷ ($—K + $3,309,000K)
= 12.39%
Resideo Technologies Inc's return on total capital has shown fluctuations over the period under consideration. The ratio stood at a relatively high level of 33.14% in March 2020, showing a strong performance. However, there was a slight decline in the following quarters, with the ratio hovering around 30% levels.
There was a significant drop in return on total capital to 12.19% in December 2020, indicating a notable decrease in capital efficiency. The ratio gradually improved in the subsequent quarters, reaching 24.98% in June 2022. This upward trend continued till March 2023, with a peak of 23.39%.
However, starting from June 2023, there was a decline in the return on total capital, reaching 12.39% by December 2024. This downward trend suggests a potential decrease in capital efficiency or profitability relative to the level seen in the previous periods. Further analysis and investigation would be required to understand the factors driving these fluctuations in return on total capital for Resideo Technologies Inc.