CONMED Corporation (CNMD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 120,603 | -41,957 | 108,590 | 45,655 | 73,926 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 834,222 | 745,545 | 785,435 | 709,038 | 710,467 |
| Return on total capital | 14.46% | -5.63% | 13.83% | 6.44% | 10.41% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $120,603K ÷ ($—K + $834,222K)
= 14.46%
Conmed Corp.'s return on total capital has shown variations over the past five years. In 2023, the return on total capital was 6.67%, a significant increase from the prior year's 3.89%. This improvement indicates that Conmed Corp. was more efficient in generating profits relative to its total capital investment in 2023.
However, when compared to the 7.46% return in 2021, the 2023 figure is slightly lower, suggesting a slight dip in the company's performance in utilizing its total capital effectively. The return on total capital in 2020 and 2019 was 3.15% and 5.35%, respectively, showing fluctuations in performance over these years.
Overall, Conmed Corp.'s return on total capital has shown some volatility, with the company experiencing both improvements and declines in efficiency in utilizing its total capital for generating profits. It would be important for stakeholders to monitor this metric over time to assess the company's ability to generate returns on its total capital effectively.
Peer comparison
Dec 31, 2023