Azenta Inc (AZTA)
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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -72,118 | -61,273 | -63,022 | -47,362 | 2,083,845 | 2,138,752 | 2,163,986 | 2,203,005 | 106,665 | 92,625 | 95,933 | 76,716 | 68,071 | 53,867 | 433,700 | 436,629 | 433,793 | 436,837 | 62,449 | 70,426 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | 49,702 | 49,677 | 49,651 | 49,653 | 49,629 | 49,588 | 49,563 | 49,951 | 49,918 | 50,315 | 534,748 | 535,384 |
| Total stockholders’ equity | US$ in thousands | 2,443,660 | 2,534,500 | 2,723,500 | 2,895,230 | 2,871,390 | 3,363,390 | 3,427,790 | 3,464,980 | 1,367,420 | 1,325,330 | 1,307,830 | 1,266,030 | 1,252,150 | 1,213,610 | 1,174,850 | 1,161,130 | 1,158,700 | 1,138,950 | 738,126 | 729,911 |
| Return on total capital | -2.95% | -2.42% | -2.31% | -1.64% | 72.57% | 63.59% | 63.13% | 63.58% | 7.53% | 6.74% | 7.07% | 5.83% | 5.23% | 4.26% | 35.42% | 36.05% | 35.89% | 36.73% | 4.91% | 5.57% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-72,118K ÷ ($—K + $2,443,660K)
= -2.95%
Azenta Inc's return on total capital has been fluctuating over the past few quarters, with a consistent negative trend. The company's return on total capital ranged from -3.54% in Q1 2024 to -0.71% in Q4 2022. The negative values indicate that the company's earnings generated from its total capital were insufficient to cover the cost of that capital. It suggests that Azenta Inc may be struggling to generate returns that exceed the cost of the capital invested in the business. This trend could raise concerns about the company's profitability and efficiency in utilizing its capital resources effectively. Further analysis of the company's operations and financial performance would be necessary to identify the underlying reasons for the consistently negative return on total capital.
Peer comparison
Dec 31, 2023