Embecta Corp (EMBC)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 178,200 | 221,500 | 103,700 | 149,500 | 192,700 | 220,500 | |||
| Long-term debt | US$ in thousands | 1,592,900 | 1,593,900 | 1,595,000 | 1,596,000 | 1,597,100 | 1,598,100 | 1,599,200 | 1,403,700 | — |
| Total stockholders’ equity | US$ in thousands | -793,500 | -821,700 | -809,400 | -822,600 | -836,100 | -891,400 | -847,600 | -967,500 | 550,500 |
| Return on total capital | 22.29% | 28.68% | 13.20% | 19.33% | 25.32% | 31.20% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $178,200K ÷ ($1,592,900K + $-793,500K)
= 22.29%
Embecta Corp's return on total capital has shown some fluctuations over the past few quarters. In the most recent quarter ending December 31, 2023, the return on total capital was 22.29%, which represents a decrease from the previous quarter. However, it is important to note that despite this decrease, the company's return on total capital remains relatively strong.
Looking at the trend over the past year, we can see that the return on total capital has been generally positive, with fluctuations in performance noted in some quarters. The company achieved the highest return on total capital in the third quarter of 2022 at 31.20%, indicating a strong performance during that period.
Overall, Embecta Corp's return on total capital demonstrates the company's ability to generate profits relative to the total capital employed in its operations. It is essential for stakeholders to monitor this ratio over time to assess the company's efficiency in utilizing its resources effectively to generate returns for its investors.
Peer comparison
Dec 31, 2023