Artivion Inc (AORT)
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 | 3,713 | 3,240 | 2,060 | -476 | 16,544 |
| Long-term debt | US$ in thousands | 305,531 | 306,499 | 307,493 | 290,468 | 214,571 |
| Total stockholders’ equity | US$ in thousands | 281,780 | 284,329 | 300,728 | 328,713 | 285,696 |
| Return on total capital | 0.63% | 0.55% | 0.34% | -0.08% | 3.31% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,713K ÷ ($305,531K + $281,780K)
= 0.63%
Artivion Inc's return on total capital has fluctuated over the past five years. The return on total capital was -1.44% at the end of 2023, a decrease from the previous year's 1.04%. This indicates that the company's ability to generate profits from its total capital employed decreased significantly in 2023 compared to 2022.
Looking further back, the return on total capital was also negative in 2021 at -1.27%, showing a slight improvement in 2020 at 0.39%. The highest return on total capital was observed at 3.36% in 2019, indicating that the company was more efficient in using its total capital to generate profits that year.
Overall, the trend in Artivion Inc's return on total capital shows inconsistency and volatility, with fluctuations in performance over the past five years. The negative returns in some years highlight challenges the company may face in effectively utilizing its total capital to generate returns for its stakeholders. Further analysis and investigation into the factors influencing these fluctuations would be necessary to determine the underlying causes and potential strategies for improvement.
Peer comparison
Dec 31, 2023