Genpact Limited (G)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 630,857 | 595,876 | 561,024 | 513,387 | 502,151 | 486,325 | 487,773 | 514,993 | 508,999 | 510,127 | 502,480 | 455,941 | 438,717 | 445,182 | 434,124 | 449,962 | 429,376 | 420,699 | 401,143 | 374,463 |
| Long-term debt | US$ in thousands | 824,720 | 1,230,420 | 1,236,660 | 1,242,910 | 1,249,150 | 746,613 | 1,256,270 | 1,264,370 | 1,272,480 | 1,280,570 | 1,288,660 | 1,646,230 | 1,307,370 | 1,315,480 | 1,323,580 | 1,331,690 | 1,339,800 | 950,908 | 959,151 | 966,873 |
| Total stockholders’ equity | US$ in thousands | 2,248,390 | 2,009,450 | 1,932,860 | 1,925,330 | 1,826,160 | 1,731,850 | 1,750,440 | 1,847,390 | 1,897,130 | 1,952,890 | 1,838,970 | 1,749,620 | 1,834,230 | 1,777,180 | 1,660,610 | 1,573,080 | 1,689,170 | 1,605,680 | 1,583,370 | 1,495,170 |
| Return on total capital | 20.53% | 18.39% | 17.70% | 16.20% | 16.33% | 19.62% | 16.22% | 16.55% | 16.06% | 15.78% | 16.07% | 13.43% | 13.96% | 14.39% | 14.55% | 15.49% | 14.18% | 16.46% | 15.78% | 15.21% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $630,857K ÷ ($824,720K + $2,248,390K)
= 20.53%
Genpact Ltd's return on total capital has shown a positive trend over the past eight quarters. The company's return on total capital has consistently improved from 13.58% in Q1 2022 to 17.72% in Q4 2023. This indicates that the company has been effectively utilizing its total capital to generate profits and create value for its stakeholders.
The average return on total capital over this period is 16.78%, reflecting a generally strong performance in capital utilization. The company's ability to maintain return on total capital above the average indicates sound financial management and efficiency in deploying capital resources to generate returns.
Overall, Genpact Ltd's return on total capital demonstrates a positive trajectory, suggesting that the company has been successful in generating profitability relative to the total capital employed in its operations.
Peer comparison
Dec 31, 2023