Edwards Lifesciences Corp (EW)
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 | 1,658,800 | 1,639,400 | 1,622,500 | 1,814,378 | 1,853,436 | 1,878,281 | 1,998,554 | 1,859,290 | 1,829,672 | 1,735,456 | 1,631,129 | 1,542,959 | 1,483,064 | 1,501,680 | 1,456,381 | 1,743,986 | 1,735,394 | 1,747,203 | 1,696,111 | 1,364,321 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,998,400 | 9,545,600 | 7,437,400 | 7,117,900 | 6,650,000 | 6,657,500 | 6,375,700 | 5,978,000 | 5,806,700 | 6,217,800 | 5,943,600 | 5,844,900 | 5,835,900 | 5,541,300 | 5,133,300 | 4,658,400 | 4,574,300 | 4,210,300 | 3,839,100 | 3,901,100 |
| Return on total capital | 16.59% | 17.17% | 21.82% | 25.49% | 27.87% | 28.21% | 31.35% | 31.10% | 31.51% | 27.91% | 27.44% | 26.40% | 25.41% | 27.10% | 28.37% | 37.44% | 37.94% | 41.50% | 44.18% | 34.97% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,658,800K ÷ ($—K + $9,998,400K)
= 16.59%
Edwards Lifesciences Corp's return on total capital has shown varying performance over the analyzed period. The ratio started strong at 34.97% as of March 31, 2020, and increased significantly to 44.18% by June 30, 2020. It remained above 40% for the next three quarters, indicating efficient capital utilization.
However, there was a slight dip to 37.94% by December 31, 2020, before stabilizing around the high 30s to low 40s range for the next few quarters. A noticeable decrease occurred in the second half of 2021, with the ratio dropping to 27.10% by September 30 and further declining to 25.41% by December 31.
In the following year, the return on total capital fluctuated in the mid to high 20s range, showing some level of recovery but not reaching previous peaks. By December 31, 2024, the ratio had dropped to 16.59%, indicating a significant decrease in the company's efficiency in utilizing its total capital.
Overall, Edwards Lifesciences Corp's return on total capital exhibited a mix of strong performance and fluctuations, suggesting the need for continuous monitoring and strategic adjustments to optimize capital allocation and improve profitability.
Peer comparison
Dec 31, 2024