Equifax Inc (EFX)
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 | 1,039,600 | 959,300 | 1,112,700 | 1,094,800 | 826,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,796,900 | 4,534,100 | 3,956,500 | 3,584,400 | 3,168,400 |
| Return on total capital | 21.67% | 21.16% | 28.12% | 30.54% | 26.10% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,039,600K ÷ ($—K + $4,796,900K)
= 21.67%
Equifax Inc's return on total capital has shown a fluctuating trend over the years. It increased from 26.10% in December 31, 2020, to 30.54% in December 31, 2021, indicating an improvement in the company's ability to generate returns from its total capital employed. In the following year, the return on total capital slightly decreased to 28.12% by December 31, 2022. However, there was a more significant decrease to 21.16% by December 31, 2023. The trend continued with a slight increase to 21.67% by December 31, 2024.
Overall, Equifax Inc's return on total capital has demonstrated variability, with periods of improvement and decline. It is important for stakeholders to monitor these fluctuations and understand the factors driving the changes in order to assess the company's efficiency in utilizing its capital to generate returns.