EPAM Systems Inc (EPAM)
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 | 544,584 | 536,585 | 572,966 | 471,642 | 379,324 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,629,210 | 3,470,890 | 3,001,530 | 2,487,120 | 1,983,020 |
| Return on total capital | 15.01% | 15.46% | 19.09% | 18.96% | 19.13% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $544,584K ÷ ($—K + $3,629,210K)
= 15.01%
EPAM Systems Inc's return on total capital has shown a relatively stable trend over the past five years. The company's return on total capital was 19.13% as of December 31, 2020, slightly decreasing to 18.96% by December 31, 2021, and then increasing to 19.09% by December 31, 2022. However, there was a noticeable decline in the return on total capital to 15.46% by December 31, 2023, followed by a further decrease to 15.01% by December 31, 2024.
Overall, the company has demonstrated a solid ability to generate returns on the total capital employed in its operations, with figures consistently above 15% in recent years. It is important for stakeholders to monitor the trend closely and investigate the factors contributing to the recent declines in return on total capital to ensure sustainable and efficient capital utilization in the future.
Peer comparison
Dec 31, 2024