Cencora Inc. (COR)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,340,730 | 2,366,380 | 2,354,200 | -5,135,350 | 1,111,920 |
| Long-term debt | US$ in thousands | 4,146,110 | 4,632,360 | 6,383,710 | 3,618,260 | 4,033,880 |
| Total stockholders’ equity | US$ in thousands | 522,003 | -211,559 | 223,354 | -1,018,920 | 2,878,920 |
| Return on total capital | 50.14% | 53.53% | 35.63% | -197.56% | 16.08% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,340,730K ÷ ($4,146,110K + $522,003K)
= 50.14%
Based on the return on total capital data, Cencora Inc. has shown a consistent improvement in its performance over the past four years. The return on total capital has increased from 7.85% in December 2020 to 50.58% in September 2023. This indicates that the company has been able to generate a higher return relative to its total capital employed in the business during this period.
The substantial increase in the return on total capital demonstrates that the company has been able to effectively utilize its capital resources to generate profits. This could be attributed to improved operational efficiency, effective asset management, or strategic investment decisions that have contributed to the overall profitability of the company.
The consistent upward trend in the return on total capital reflects positively on the company's financial performance and may indicate the successful implementation of strategies aimed at maximizing returns from its capital investments. It also suggests that the company has been able to effectively leverage its resources to generate higher returns for its shareholders.
Overall, the increasing trend in return on total capital for Cencora Inc. signifies improved capital efficiency and is a positive indicator of the company's financial strength and performance over the period under consideration.
Peer comparison
Sep 30, 2023