Genpact Limited (G)
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 | 630,857 | 502,151 | 508,999 | 438,717 | 429,376 |
| Long-term debt | US$ in thousands | 824,720 | 1,249,150 | 1,272,480 | 1,307,370 | 1,339,800 |
| Total stockholders’ equity | US$ in thousands | 2,248,390 | 1,826,160 | 1,897,130 | 1,834,230 | 1,689,170 |
| Return on total capital | 20.53% | 16.33% | 16.06% | 13.96% | 14.18% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $630,857K ÷ ($824,720K + $2,248,390K)
= 20.53%
The return on total capital for Genpact Ltd has shown a positive trend over the past five years, with values increasing from 13.69% in 2019 to 17.72% in 2023. This indicates that the company has been effectively generating returns on the total capital employed in its operations. The consistent improvement in return on total capital reflects positively on the company's efficiency in utilizing its financial resources to generate profits. Overall, the increasing trend in return on total capital demonstrates Genpact Ltd's ability to generate value for its stakeholders and optimize its capital structure.
Peer comparison
Dec 31, 2023