Embecta Corp (EMBC)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 166,800 | 221,500 | 309,600 |
| Long-term debt | US$ in thousands | 1,565,300 | 1,593,900 | 1,598,100 |
| Total stockholders’ equity | US$ in thousands | -738,300 | -821,700 | -891,400 |
| Return on total capital | 20.17% | 28.68% | 43.81% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $166,800K ÷ ($1,565,300K + $-738,300K)
= 20.17%
Embecta Corp's return on total capital has exhibited a declining trend over the past three years. The return on total capital was 43.81% in Sep 30, 2022, showing a significant decrease to 28.68% in Sep 30, 2023, and further declining to 20.17% in Sep 30, 2024. This indicates a decreasing ability of the company to generate profits relative to the total capital employed in its operations. It is essential for Embecta Corp to investigate the factors contributing to this downward trend and take appropriate measures to improve the efficiency of capital utilization to enhance profitability and sustainable growth in the future.
Peer comparison
Sep 30, 2024