Enovis Corp (ENOV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -775,719 | -47,179 | 22,883 | -91,969 | -66,182 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,562,260 | 3,418,390 | 3,448,080 | 4,617,380 | 3,543,390 |
| Return on total capital | -30.27% | -1.38% | 0.66% | -1.99% | -1.87% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-775,719K ÷ ($—K + $2,562,260K)
= -30.27%
The return on total capital for Enovis Corp has fluctuated over the years, indicating mixed performance in utilizing its total capital effectively. In 2020 and 2021, the company incurred negative returns of -1.87% and -1.99% respectively, suggesting that it struggled to generate profits relative to the total capital invested.
However, in 2022, there was a notable improvement as the return on total capital increased to 0.66%, indicating a better utilization of capital resources to generate returns. This positive trend was short-lived, as in 2023 and 2024, the return on total capital dropped to -1.38% and -30.27% respectively, reflecting significant challenges in generating sufficient profits relative to the capital employed.
Overall, the fluctuating return on total capital for Enovis Corp suggests the need for closer scrutiny of capital allocation decisions and operational efficiency to enhance profitability and ensure sustainable business growth.
Peer comparison
Dec 31, 2024