Equifax Inc (EFX)
Return on total capital
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 952,800 | 906,800 | 921,000 | 974,900 | 1,108,700 | 1,089,500 | 1,123,100 | 1,128,700 | 1,090,600 | 1,043,000 | 1,086,500 | 940,100 | 820,800 | 755,400 | 538,500 | 491,500 | -308,200 | -317,200 | -378,800 | -302,100 |
| Long-term debt | US$ in thousands | 4,747,800 | 5,500,400 | 5,503,000 | 4,987,900 | 4,820,100 | 4,819,200 | 4,073,500 | 4,471,900 | 4,470,100 | 4,969,400 | 3,280,900 | 3,279,100 | 3,277,300 | 3,275,300 | 3,872,100 | 3,505,100 | 3,379,500 | 2,834,700 | 2,833,300 | 2,656,900 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,578,600 | 2,515,800 | 2,543,400 | 2,561,700 |
| Return on total capital | 10.27% | 9.26% | 9.50% | 10.77% | 12.63% | 12.70% | 14.26% | 13.59% | 13.54% | 12.26% | 16.12% | 14.25% | 12.73% | 12.18% | 8.20% | 8.34% | -5.17% | -5.93% | -7.05% | -5.79% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $952,800K ÷ ($4,747,800K + $4,534,100K)
= 10.27%
Equifax, Inc.'s return on total capital has been on a declining trend over the past eight quarters, decreasing from 12.25% in Q2 2022 to 9.11% in the most recent quarter, Q4 2023. This indicates a decrease in the effectiveness of the company in generating returns from its total capital employed. While the return on total capital has fluctuated slightly during this period, it is important to note the downward trend. It would be advisable for Equifax to closely monitor and address the factors contributing to this decline to improve the efficiency of its capital utilization and enhance overall financial performance.