Equifax Inc (EFX)
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 | 952,900 | 1,108,700 | 1,090,500 | 820,700 | -308,100 |
| Long-term debt | US$ in thousands | 4,747,800 | 4,820,100 | 4,470,100 | 3,277,300 | 3,379,500 |
| Total stockholders’ equity | US$ in thousands | 4,534,100 | 3,956,500 | 3,584,400 | 3,168,400 | 2,578,600 |
| Return on total capital | 10.27% | 12.63% | 13.54% | 12.73% | -5.17% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $952,900K ÷ ($4,747,800K + $4,534,100K)
= 10.27%
Equifax, Inc.'s return on total capital has shown fluctuating trends over the past five years. In 2023, the return on total capital was 9.11%, which was a decrease from the previous year's 10.84%. This decline indicates that the company's ability to generate profits from its total capital decreased in 2023.
Looking further back, in 2021, Equifax, Inc. achieved a return on total capital of 12.82%, representing a significant peak in performance over the five-year period. This suggests that the company was particularly efficient in utilizing its total capital to generate returns in that year.
In contrast, in 2019, Equifax, Inc. experienced a negative return on total capital of -5.63%. This negative figure implies that the company's capital utilization led to losses rather than profits, indicating a period of financial difficulty or inefficiency.
Overall, Equifax, Inc.'s return on total capital has displayed variability, with 2021 standing out as a year of strong performance, while 2019 was challenging. It is essential for stakeholders to closely monitor these fluctuations to assess the company's financial health and operational efficiency.