Bruker Corporation (BRKR)

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 253,100 561,300 429,100 404,400 236,600
Long-term debt US$ in thousands 2,061,800 1,160,300 1,200,500 1,221,800 842,300
Total stockholders’ equity US$ in thousands 1,781,200 1,377,200 1,113,800 1,070,500 961,200
Return on total capital 6.59% 22.12% 18.54% 17.64% 13.12%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $253,100K ÷ ($2,061,800K + $1,781,200K)
= 6.59%

The return on total capital for Bruker Corporation has shown fluctuations over the years as per the provided data. In December 2020, the return on total capital was 13.12%, which increased to 17.64% by December 2021. The trend continued to improve in the following years, reaching 18.54% in December 2022 and further increasing to 22.12% by December 2023.

However, there was a notable decline in the return on total capital by December 2024, decreasing to 6.59%, signaling a potential decrease in the company's efficiency in generating returns relative to its total capital employed. It is important for Bruker Corporation to closely monitor and address the factors contributing to this decline in order to maintain sustainable and profitable operations in the future.