Stanley Black & Decker Inc (SWK)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 154,900 | 1,268,600 | 1,929,700 | 1,494,500 | 1,364,800 |
| Long-term debt | US$ in thousands | 6,101,000 | 5,352,900 | 4,353,600 | 4,245,400 | 3,176,400 |
| Total stockholders’ equity | US$ in thousands | 9,056,100 | 9,712,100 | 11,590,500 | 11,059,600 | 9,136,300 |
| Return on total capital | 1.02% | 8.42% | 12.10% | 9.76% | 11.08% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $154,900K ÷ ($6,101,000K + $9,056,100K)
= 1.02%
The return on total capital for Stanley Black & Decker Inc has exhibited fluctuations over the past five years. The lowest return on total capital was 1.02% in 2023, significantly down from the previous year. In 2022, the return on total capital was relatively high at 8.42%, showing a substantial decrease from 12.10% in 2021. However, the return on total capital remained relatively stable in 2020 and 2019, with values of 9.76% and 11.08% respectively.
The declining trend in recent years indicates potential challenges in generating returns compared to the capital invested in the business. It is essential to further assess the factors influencing these fluctuations in the return on total capital to make informed decisions regarding the company's performance and future strategies.
Peer comparison
Dec 31, 2023