Enovis Corp (ENOV)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -26,801 | -18,802 | -88,245 | -423 | 46,884 | 21,656 | 117,582 | 70,940 | 101,095 | -63,511 | -24,899 | -60,368 | -66,182 | 144,497 | 123,515 | -301,427 | -376,466 | -381,026 | -372,267 | 98,189 |
| Long-term debt | US$ in thousands | 466,164 | 395,000 | 400,000 | 285,000 | 40,000 | 0 | 0 | 1,647,870 | 2,078,620 | 1,611,690 | 1,576,520 | 1,482,000 | 2,204,170 | 2,191,720 | 2,220,930 | 2,513,020 | 2,284,180 | 4,002,360 | 4,078,230 | 4,037,150 |
| Total stockholders’ equity | US$ in thousands | 3,418,390 | 3,439,620 | 3,448,640 | 3,443,340 | 3,448,080 | 3,406,690 | 3,489,270 | 4,600,040 | 4,617,380 | 4,586,540 | 4,307,850 | 4,246,590 | 3,543,390 | 3,412,450 | 3,351,920 | 3,291,140 | 3,441,430 | 2,982,010 | 3,094,800 | 3,577,500 |
| Return on total capital | -0.69% | -0.49% | -2.29% | -0.01% | 1.34% | 0.64% | 3.37% | 1.14% | 1.51% | -1.02% | -0.42% | -1.05% | -1.15% | 2.58% | 2.22% | -5.19% | -6.58% | -5.46% | -5.19% | 1.29% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-26,801K ÷ ($466,164K + $3,418,390K)
= -0.69%
Over the past eight quarters, Enovis Corp's return on total capital has fluctuated significantly. The company experienced a negative return on total capital in six out of the eight quarters, with the lowest being -4.66% in Q1 2023. This indicates that the company's total capital is not generating positive returns consistently. The highest return on total capital was 4.40% in Q2 2022, but this was followed by a downward trend in subsequent quarters. Overall, the company's return on total capital has been volatile and inconsistent, suggesting potential inefficiencies or challenges in effectively utilizing its capital resources to generate profits.
Peer comparison
Dec 31, 2023