Embecta Corp (EMBC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 166,800 | 166,400 | 161,800 | 178,200 | 221,500 | 103,700 | 149,500 | 192,700 | 220,500 | |||
| Long-term debt | US$ in thousands | 1,565,300 | 1,590,800 | 1,591,800 | 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 | -738,300 | -763,700 | -769,600 | -793,500 | -821,700 | -809,400 | -822,600 | -836,100 | -891,400 | -847,600 | -967,500 | 550,500 |
| Return on total capital | 20.17% | 20.12% | 19.68% | 22.29% | 28.68% | 13.20% | 19.33% | 25.32% | 31.20% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $166,800K ÷ ($1,565,300K + $-738,300K)
= 20.17%
Embecta Corp's return on total capital has shown fluctuation over the past several quarters. The return on total capital was 20.17% in September 2024, slightly lower than the 20.12% in June 2024 and the 19.68% in March 2024. However, it was significantly lower than the 22.29% recorded in December 2023.
Looking further back, there was a considerable decrease in return on total capital from September 2023 (28.68%) to June 2023 (13.20%), followed by a moderate increase in March 2023 (19.33%). The return on total capital peaked at 25.32% in December 2022 and 31.20% in September 2022.
Overall, the return on total capital has shown variability over the periods analyzed, with some quarters performing better than others. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to generate returns relative to the total capital employed.
Peer comparison
Sep 30, 2024