Agilent Technologies Inc (A)
Return on total capital
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,617,000 | 1,434,000 | 1,588,000 | 1,441,000 | 920,000 |
| Long-term debt | US$ in thousands | — | — | — | 2,729,000 | 2,284,000 |
| Total stockholders’ equity | US$ in thousands | 5,898,000 | 5,845,000 | 5,305,000 | 5,389,000 | 4,873,000 |
| Return on total capital | 27.42% | 24.53% | 29.93% | 17.75% | 12.85% |
October 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,617,000K ÷ ($—K + $5,898,000K)
= 27.42%
Agilent Technologies Inc's return on total capital has shown a generally increasing trend over the past five years. The company's return on total capital was 12.85% in 2020 and has since steadily improved, reaching 27.42% in 2024. This indicates that Agilent's ability to generate profits from its total capital employed has been strengthening over the years. The consistent growth in return on total capital suggests effective utilization of both equity and debt in generating higher returns for the company. Investors and stakeholders may view this upward trend positively as it demonstrates improving efficiency in generating profits relative to the total capital invested in the business.
Peer comparison
Oct 31, 2024