EPAM Systems Inc (EPAM)
Return on total capital
| Dec 31, 2024 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 547,306 | 533,288 | 488,161 | 508,036 | 519,063 | 597,731 | 645,726 | 615,250 | 586,384 | 545,171 | 494,251 | 487,722 | 511,141 | 462,117 | 437,154 | 405,889 | 371,950 | 345,284 | 321,289 | 315,723 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,629,210 | 3,554,050 | 3,397,380 | 3,475,110 | 3,470,890 | 3,299,440 | 3,262,760 | 3,128,960 | 3,001,530 | 2,757,170 | 2,622,350 | 2,552,100 | 2,487,120 | 2,339,120 | 2,212,670 | 2,063,940 | 1,983,020 | 1,860,230 | 1,753,090 | 1,647,480 |
| Return on total capital | 15.08% | 15.01% | 14.37% | 14.62% | 14.95% | 18.12% | 19.79% | 19.66% | 19.54% | 19.77% | 18.85% | 19.11% | 20.55% | 19.76% | 19.76% | 19.67% | 18.76% | 18.56% | 18.33% | 19.16% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $547,306K ÷ ($—K + $3,629,210K)
= 15.08%
EPAM Systems Inc's return on total capital has shown a generally positive trend over the period from March 31, 2020, to December 31, 2024. The return on total capital started at 19.16% in March 2020 and increased gradually to reach a peak of 20.55% in December 2021. This upward trend indicates that the company was effectively utilizing its total capital to generate higher returns for shareholders.
However, from March 2022 to December 2024, the return on total capital experienced a slight decline, dropping to 15.08% by the end of December 2024. This decline may suggest a decrease in the company's efficiency in generating returns relative to the total capital employed.
Overall, EPAM Systems Inc's return on total capital fluctuated within a range of 14.37% to 20.55% during the period under review, reflecting variations in the company's profitability and capital utilization efficiency. Investors and stakeholders should monitor these fluctuations closely to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024