Genpact Limited (G)
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 | 702,061 | 674,619 | 658,662 | 645,731 | 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 |
| Long-term debt | US$ in thousands | 1,195,270 | 1,201,440 | 1,207,610 | 818,327 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,389,610 | 2,394,690 | 2,337,760 | 2,298,370 | 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 |
| Return on total capital | 19.58% | 18.76% | 18.58% | 20.72% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $702,061K ÷ ($1,195,270K + $2,389,610K)
= 19.58%
Genpact Limited's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital started at 15.49% in March 2020 and experienced a downward trend until March 2021, where it reached 13.43%. However, from June 2021 onwards, there was an upward trend in return on total capital, reaching a peak of 20.72% in March 2024.
The return on total capital reflects the efficiency and profitability of the company in generating returns from both debt and equity capital invested in its operations. The increasing trend seen from June 2021 to March 2024 signifies a positive development in the company's ability to generate profits relative to the total capital employed.
Overall, the data suggests that Genpact Limited has been able to effectively utilize its total capital to generate returns, with the return on total capital showing an upward trend in the latter part of the period under review. This improvement indicates potential strength in the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024