Edwards Lifesciences Corp (EW)

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	1,618,700	1,748,500	1,690,300	897,600	1,146,800
Long-term debt	US$ in thousands	597,000	596,300	595,700	595,000	594,400
Total stockholders’ equity	US$ in thousands	6,650,000	5,806,700	5,835,900	4,574,300	4,148,300
Return on total capital		22.34%	27.31%	26.28%	17.36%	24.18%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,618,700K ÷ ($597,000K + $6,650,000K)
= 22.34%

Return on total capital is an important indicator of a company's ability to generate profits from the capital invested in the business. For Edwards Lifesciences Corp, the return on total capital has fluctuated over the past five years.

In 2023, the return on total capital was 23.84%, showing a decrease from the previous year when it was 27.93%. This decline may indicate that the company's ability to generate profits from its total capital has decreased. However, it is still relatively high compared to previous years.

In 2021, the return on total capital was 24.76%, which was slightly lower than the 2020 figure of 17.64%. The significant increase in 2021 suggests that the company efficiently utilized its capital to generate returns.

The highest return on total capital was in 2019 at 25.42%, indicating a strong performance in that year. Overall, the return on total capital for Edwards Lifesciences Corp has shown variability over the years but has generally remained at healthy levels, reflecting the company's efficiency in utilizing its capital resources to generate profits.