Enovis Corp (ENOV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -26,801 | 46,880 | 81,241 | 50,870 | -376,513 |
| Long-term debt | US$ in thousands | 466,164 | 40,000 | 2,078,620 | 2,204,170 | 2,284,180 |
| Total stockholders’ equity | US$ in thousands | 3,418,390 | 3,448,080 | 4,617,380 | 3,543,390 | 3,441,430 |
| Return on total capital | -0.69% | 1.34% | 1.21% | 0.89% | -6.58% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-26,801K ÷ ($466,164K + $3,418,390K)
= -0.69%
The return on total capital for Enovis Corp has displayed fluctuating trends over the past five years. In 2023, the company achieved a return on total capital of -1.25%, signifying that the company incurred a loss on the capital employed in that period. This is a decline from the previous year's return on total capital of -2.45%, indicating a slight improvement in performance, albeit remaining negative.
The year 2021 saw a return on total capital of 4.24%, a significant increase from the prior year's 3.48%. This suggests that the company was able to generate positive returns on the capital invested in the business in 2021, reflecting improved operational efficiency or profitability.
In 2019, Enovis Corp recorded a return on total capital of 4.67%, which was slightly higher than the return in 2021. This indicates that the company was able to maintain a relatively stable performance in terms of generating returns on the total capital employed.
Overall, the return on total capital for Enovis Corp has been volatile, with both positive and negative returns recorded in recent years. It is essential for the company to focus on enhancing profitability and operational effectiveness to ensure consistent positive returns on the capital invested in the business.
Peer comparison
Dec 31, 2023