Balchem Corporation (BCPC)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	182,981	159,874	146,267	129,946	113,131
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,149,910	1,053,980	938,284	877,015	828,233
Return on total capital		15.91%	15.17%	15.59%	14.82%	13.66%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $182,981K ÷ ($—K + $1,149,910K)
= 15.91%

Balchem Corporation's return on total capital has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The return on total capital increased from 13.66% in 2020 to 15.91% in 2024, indicating an improvement in the company's ability to generate profits from its total invested capital.

The consistent growth in return on total capital reflects Balchem Corporation's efficient utilization of both debt and equity to generate returns for its investors. This improvement suggests that the company's capital allocation strategies and operational efficiency have been effective in generating higher returns on the capital invested in the business.

Overall, Balchem Corporation's increasing return on total capital is a positive indicator of the company's financial performance and indicates that the management is effectively utilizing the company's resources to create value for its shareholders. It also suggests that the company is becoming more profitable over time relative to the total capital employed in its operations.