Equifax Inc (EFX)
Return on total capital
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,039,600 | 1,001,400 | 1,004,800 | 975,700 | 959,200 | 912,000 | 925,300 | 978,900 | 1,112,600 | 1,171,600 | 1,205,200 | 1,210,800 | 1,173,000 | 1,103,700 | 1,007,700 | 862,500 | 692,700 | 682,300 | 597,600 | 547,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,796,900 | 4,909,000 | 4,696,000 | 4,561,500 | 4,534,100 | 4,293,300 | 4,191,200 | 4,064,000 | 3,956,500 | 3,759,000 | 3,805,000 | 3,834,100 | 3,584,400 | 3,539,200 | 3,460,500 | 3,318,000 | 3,168,400 | 2,929,000 | 2,694,100 | 2,386,500 |
| Return on total capital | 21.67% | 20.40% | 21.40% | 21.39% | 21.16% | 21.24% | 22.08% | 24.09% | 28.12% | 31.17% | 31.67% | 31.58% | 32.73% | 31.19% | 29.12% | 25.99% | 21.86% | 23.29% | 22.18% | 22.94% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 analyzed period from March 31, 2020, to December 31, 2024. The ratio started at 22.94% in March 2020, experienced some variability, and peaked at 32.73% in December 2021, indicating efficient utilization of both debt and equity to generate profits.
Subsequently, the return on total capital declined to 21.16% by December 2023, reflecting a decrease in profitability compared to the peak. However, there was a slight increase to 21.67% by December 2024.
Overall, Equifax Inc's return on total capital has displayed some volatility but generally remained above 20% throughout the period, suggesting a relatively strong performance in generating returns from the total capital employed. Further analysis and comparison with industry benchmarks could provide additional insights into the company's capital efficiency and profitability.