GE HealthCare Technologies Inc. (GEHC)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,435,000 | 2,523,000 | |||
| Long-term debt | US$ in thousands | 8,436,000 | 10,253,000 | 10,233,000 | 10,234,000 | 8,234,000 |
| Total stockholders’ equity | US$ in thousands | 7,133,000 | 7,131,000 | 7,102,000 | 6,690,000 | 9,357,000 |
| Return on total capital | 15.64% | 14.51% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,435,000K ÷ ($8,436,000K + $7,133,000K)
= 15.64%
Based on the provided data, GE HealthCare Technologies Inc. has shown a consistent improvement in its return on total capital over the past five quarters. The return on total capital increased from 14.51% in September 2023 to 15.64% in December 2023, indicating the company's ability to generate profits from its total capital employed. This upward trend reflects positively on the company's operational efficiency and effective capital allocation strategies. Overall, the improvement in return on total capital suggests that GE HealthCare Technologies Inc. is making efficient use of its resources to generate returns for its stakeholders.
Peer comparison
Dec 31, 2023