Bio-Rad Laboratories Inc (BIO)

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	-800,689	-138,444	-483,599	-204,999	-4,666,145	-7,802,795	-2,582,920	-213,620	5,450,550	8,569,990	5,235,930	5,327,770	4,931,957	4,551,705	2,531,870	2,055,642	2,284,525	543,937	1,229,781	800,369
Long-term debt	US$ in thousands	1,199,100	1,198,710	1,198,380	1,198,000	1,197,700	1,197,270	1,196,940	1,196,740	10,514	10,600	10,779	10,901	12,258	12,241	12,200	12,205	13,579	437,808	437,680	437,600
Total stockholders’ equity	US$ in thousands	8,741,130	8,416,200	8,446,890	9,763,720	9,615,250	8,477,470	8,945,040	10,203,300	13,685,200	15,332,400	11,594,900	10,609,100	9,889,690	8,825,140	7,353,400	6,293,080	5,756,840	5,131,190	5,486,810	4,863,860
Return on total capital		-8.06%	-1.44%	-5.01%	-1.87%	-43.15%	-80.65%	-25.47%	-1.87%	39.80%	55.86%	45.12%	50.17%	49.81%	51.51%	34.37%	32.60%	39.59%	9.77%	20.76%	15.10%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-800,689K ÷ ($1,199,100K + $8,741,130K)
= -8.06%

Bio-Rad Laboratories Inc.'s return on total capital has been gradually decreasing over the past eight quarters, from 5.21% in Q2 2022 to 3.40% in Q4 2023. This downward trend indicates a declining efficiency in generating profits from the total capital employed by the company. It is important for the management to closely monitor and address the factors contributing to this decline in order to improve the company's overall performance and profitability.