GE HealthCare Technologies Inc. (GEHC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,625,000 | 2,435,000 | 2,522,000 |
| Long-term debt | US$ in thousands | 7,449,000 | 8,436,000 | 8,234,000 |
| Total stockholders’ equity | US$ in thousands | 8,446,000 | 7,133,000 | 9,357,000 |
| Return on total capital | 16.51% | 15.64% | 14.34% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,625,000K ÷ ($7,449,000K + $8,446,000K)
= 16.51%
Based on the provided data, GE HealthCare Technologies Inc.'s return on total capital has shown a positive trend over the past three years. The return on total capital increased from 14.34% as of December 31, 2022, to 15.64% as of December 31, 2023, and further improved to 16.51% as of December 31, 2024. This demonstrates that the company has been generating a higher return relative to the total capital employed in its operations over this period. The increasing trend in return on total capital indicates an improvement in the company's efficiency in generating profits from its invested capital, reflecting positively on its overall financial performance and operational effectiveness.
Peer comparison
Dec 31, 2024