Boston Scientific Corp (BSX)
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 | 2,594,000 | 2,499,000 | 2,426,000 | 2,422,000 | 2,251,000 | 2,144,000 | 1,778,000 | 1,689,000 | 1,631,000 | 1,376,000 | 1,636,000 | 1,465,000 | 1,428,000 | 1,623,000 | 917,000 | 596,000 | 297,000 | 67,000 | 390,000 | 708,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 21,770,000 | 20,708,000 | 20,371,000 | 19,925,000 | 19,281,000 | 18,885,000 | 18,226,000 | 17,850,000 | 17,574,000 | 17,641,000 | 17,252,000 | 16,735,000 | 16,623,000 | 16,461,000 | 15,942,000 | 15,720,000 | 15,327,000 | 15,564,000 | 15,616,000 | 13,804,000 |
| Return on total capital | 11.92% | 12.07% | 11.91% | 12.16% | 11.67% | 11.35% | 9.76% | 9.46% | 9.28% | 7.80% | 9.48% | 8.75% | 8.59% | 9.86% | 5.75% | 3.79% | 1.94% | 0.43% | 2.50% | 5.13% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,594,000K ÷ ($—K + $21,770,000K)
= 11.92%
The return on total capital for Boston Scientific Corp has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio indicates the company's ability to generate earnings in relation to the total capital employed in its operations.
Initially, the return on total capital was at a relatively low level of 5.13% as of March 31, 2020. However, it decreased significantly to 0.43% by September 30, 2020, before showing a slight improvement to 3.79% by March 31, 2021.
Subsequently, there was a notable increase in the return on total capital, reaching its peak at 12.16% by March 31, 2024. The ratio remained relatively high in the following quarters, showing consistency in the company's ability to generate returns on its total capital.
Overall, the upward trend observed in the return on total capital from 2021 to 2024 reflects positively on Boston Scientific Corp's efficiency in utilizing its capital resources to generate profits. The increasing trend indicates improved financial performance and a potential indicator of the company's operational effectiveness.
Peer comparison
Dec 31, 2024