Edwards Lifesciences Corp (EW)
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 | 1,567,900 | 1,534,100 | 1,793,600 | 1,691,900 | 938,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,998,400 | 6,650,000 | 5,806,700 | 5,835,900 | 4,574,300 |
| Return on total capital | 15.68% | 23.07% | 30.89% | 28.99% | 20.53% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,567,900K ÷ ($—K + $9,998,400K)
= 15.68%
Based on the data provided, Edwards Lifesciences Corp's return on total capital has shown a fluctuating trend over the years. The return on total capital was 20.53% as of December 31, 2020, increasing to 28.99% by December 31, 2021. Subsequently, there was a further increase to 30.89% by December 31, 2022. However, the return on total capital decreased to 23.07% by December 31, 2023, and further declined to 15.68% by December 31, 2024. This may indicate a fluctuating performance in generating profits relative to the capital employed by the company. It is essential for stakeholders to closely monitor this metric to assess the efficiency and profitability of Edwards Lifesciences Corp in utilizing its total capital resources.
Peer comparison
Dec 31, 2024