CONMED Corporation (CNMD)

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	200,326	141,077	-41,957	108,590	61,336
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	962,681	834,222	745,545	785,435	709,038
Return on total capital		20.81%	16.91%	-5.63%	13.83%	8.65%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $200,326K ÷ ($—K + $962,681K)
= 20.81%

To analyze CONMED Corporation's return on total capital over the specified periods:

1. December 31, 2020: The return on total capital was 8.65%. This indicates that for every dollar of total capital employed in the business, the company generated a return of 8.65%.

2. December 31, 2021: The return on total capital increased to 13.83%, showing an improvement in the company's efficiency in generating profits from its total capital investment.

3. December 31, 2022: The return on total capital was -5.63%, indicating that the company experienced a negative return on its total capital investment during this period. This may suggest that the company's operations were not generating sufficient profits to cover the capital costs.

4. December 31, 2023: The return on total capital recovered to 16.91%, surpassing the previous year's performance. This indicates a positive trend in the company's ability to generate returns from its total capital.

5. December 31, 2024: The return on total capital further improved to 20.81%, showcasing a significant increase in the company's profitability relative to its total capital investment. This signifies a positive outcome for the business in utilizing its capital effectively.

Overall, CONMED Corporation's return on total capital showed variability over the years, with fluctuations in performance. The company experienced positive growth in some years, while facing challenges in others. The increasing trend in recent years suggests an improved efficiency in generating returns from total capital, which is a positive indicator for the company's financial health. It is essential for the company to continue monitoring and managing its capital effectively to sustain and enhance its profitability levels.