Genpact Limited (G)
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 | 702,061 | 630,857 | 502,151 | 508,999 | 438,717 |
| Long-term debt | US$ in thousands | 1,195,270 | 824,720 | 1,249,150 | 1,272,480 | 1,307,370 |
| Total stockholders’ equity | US$ in thousands | 2,389,610 | 2,248,390 | 1,826,160 | 1,897,130 | 1,834,230 |
| Return on total capital | 19.58% | 20.53% | 16.33% | 16.06% | 13.96% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $702,061K ÷ ($1,195,270K + $2,389,610K)
= 19.58%
The return on total capital for Genpact Limited has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio increased from 13.96% in 2020 to 19.58% in 2024, indicating an improvement in the company's efficiency in generating returns from the total capital employed.
The steady increase in the return on total capital suggests that Genpact has been able to utilize its capital resources more effectively to generate profits over time. This is a positive sign of the company's ability to generate attractive returns for both its shareholders and debt holders.
Overall, the consistent improvement in the return on total capital showcases Genpact's efficient capital allocation and operational performance, which bodes well for the company's financial health and potential for future growth.
Peer comparison
Dec 31, 2024