Cencora Inc. (COR)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,175,249 | 2,525,551 | 2,523,203 | 2,530,463 | 2,340,731 | 2,318,309 | 2,135,478 | 2,355,116 | 2,366,378 | 2,473,754 | 2,607,184 | 2,451,374 | 2,354,197 | -4,320,838 | -4,536,734 | -4,851,566 | -5,135,357 | 1,157,624 | 1,159,487 | 897,537 |
| Long-term debt | US$ in thousands | 3,811,740 | 4,165,910 | 4,180,310 | 4,185,940 | 4,146,110 | 4,159,850 | 4,666,530 | 4,656,030 | 4,632,360 | 4,640,130 | 4,646,710 | 6,412,540 | 6,383,710 | 6,647,180 | 6,147,110 | 3,640,740 | 3,618,260 | 3,620,640 | 3,622,390 | 3,636,110 |
| Total stockholders’ equity | US$ in thousands | 645,938 | 925,209 | 1,083,140 | 911,703 | 522,003 | 686,018 | 281,686 | -178,131 | -211,559 | 224,299 | 550,309 | 241,546 | 223,354 | 37,962 | -281,756 | -697,222 | -1,018,920 | 3,857,250 | 3,590,590 | 2,954,630 |
| Return on total capital | 48.80% | 49.61% | 47.94% | 49.64% | 50.14% | 47.84% | 43.16% | 52.59% | 53.53% | 50.85% | 50.17% | 36.84% | 35.63% | -64.63% | -77.35% | -164.82% | -197.56% | 15.48% | 16.08% | 13.62% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,175,249K ÷ ($3,811,740K + $645,938K)
= 48.80%
The return on total capital for Cencora Inc. has displayed fluctuations over the past several quarters. The company showed a strong performance in the most recent quarter, with a return on total capital of 48.80%. This indicates that for every dollar of total capital employed, Cencora generated a return of 48.80 cents.
Looking at the trend over the last few quarters, the return on total capital has generally been above 40%, reflecting the company's ability to generate a consistent return on its capital base. However, there were periods of volatility, such as in the first quarter of 2021 when the return on total capital was -64.63% and in the second quarter of 2021 when it further declined to -77.35%.
Overall, Cencora Inc. has shown a relatively strong performance in terms of its return on total capital, with the most recent quarters indicating a positive trend. It is essential for the company to maintain this level of performance to ensure efficient utilization of capital and maximize shareholder value.
Peer comparison
Sep 30, 2024