Bruker Corporation (BRKR)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 255,300 430,200 484,900 518,600 553,500 431,600 441,800 434,100 421,100 421,400 401,600 421,800 413,300 400,700 368,700 321,000 248,300 253,200 259,800 275,400
Long-term debt US$ in thousands 2,061,800 2,264,500 2,132,000 1,357,300 1,160,300 1,098,600 1,122,500 1,109,000 1,200,500 1,136,800 1,171,000 1,205,400 1,221,800 717,500 721,100 715,800 842,300 828,200 924,200 914,800
Total stockholders’ equity US$ in thousands 1,781,200 1,807,000 1,789,200 1,415,300 1,377,200 1,208,800 1,231,200 1,180,300 1,113,800 937,000 970,500 1,017,000 1,070,500 1,075,600 1,002,000 967,700 961,200 952,100 897,400 915,600
Return on total capital 6.64% 10.57% 12.37% 18.70% 21.81% 18.71% 18.77% 18.96% 18.20% 20.32% 18.75% 18.98% 18.03% 22.35% 21.40% 19.07% 13.77% 14.22% 14.26% 15.05%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $255,300K ÷ ($2,061,800K + $1,781,200K)
= 6.64%

The return on total capital for Bruker Corporation has shown fluctuations over the analyzed periods. It stood at 15.05% as of March 31, 2020, gradually declining to 13.77% by December 31, 2020. However, a positive trend emerged from March 31, 2021, onwards with significant increases in the return on total capital, reaching a peak of 22.35% by September 30, 2021.

Despite some minor fluctuations in subsequent quarters, the return on total capital generally remained above 18% up to March 31, 2023, indicating efficient capital utilization and profitability. There was a notable spike to 21.81% by December 31, 2023, demonstrating a strong performance in capital allocation.

However, a decline started from June 30, 2024, with the return on total capital dropping to 12.37% and further diminishing to 6.64% by December 31, 2024. The decreasing trend towards the end of the analyzed period suggests a potential impact on the company's overall profitability and effectiveness in generating returns on invested capital.

Overall, while Bruker Corporation showcased periods of strong returns on total capital and improved capital efficiency during the analyzed timeframe, the recent decline calls for a closer examination of the company's capital management strategies to ensure sustained profitability and operational effectiveness in the future.