Bio-Rad Laboratories Inc (BIO)

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	-2,293,600	-754,165	-4,666,160	5,450,610	4,929,500
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	6,569,300	8,741,130	9,615,250	13,667,100	9,879,940
Return on total capital		-34.91%	-8.63%	-48.53%	39.88%	49.89%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-2,293,600K ÷ ($—K + $6,569,300K)
= -34.91%

The return on total capital of Bio-Rad Laboratories Inc has exhibited fluctuations over the years based on the provided data.

In December 31, 2020, the return on total capital was 49.89%, indicating that the company was generating a strong return on its total invested capital. This high percentage suggests effective capital utilization and profitability during that period.

However, by December 31, 2021, the return on total capital had decreased to 39.88%. Although still relatively high, this decrease may indicate a somewhat lower level of profitability compared to the previous year.

The data further reveals significant declines in the return on total capital in the following years. By December 31, 2022, the return on total capital dropped sharply to -48.53%, signifying a negative return on total capital. This negative figure indicates that the company may have experienced losses that period, leading to a poor capital utilization efficiency.

By December 31, 2023, the return on total capital improved slightly but remained negative at -8.63%. This suggests that the company's profitability and capital efficiency were still below par during that year.

The decline continued into December 31, 2024, with the return on total capital further decreasing to -34.91%. This negative trend indicates ongoing challenges in generating returns on the total capital invested in the business.

In summary, the return on total capital for Bio-Rad Laboratories Inc has shown a mix of positive and negative performances over the years, reflecting fluctuations in profitability and capital efficiency during the period under review.