GE HealthCare Technologies Inc. (GEHC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||
|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,625,000 | 2,513,000 | 2,454,000 | 2,416,000 | 2,435,000 | 2,523,000 |
| Long-term debt | US$ in thousands | 7,449,000 | 9,306,000 | 8,233,000 | 8,247,000 | 8,436,000 | 10,253,000 |
| Total stockholders’ equity | US$ in thousands | 8,446,000 | 8,317,000 | 7,801,000 | 7,408,000 | 7,133,000 | 7,131,000 |
| Return on total capital | 16.51% | 14.26% | 15.30% | 15.43% | 15.64% | 14.51% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,625,000K ÷ ($7,449,000K + $8,446,000K)
= 16.51%
Based on the provided data, the Return on Total Capital (ROTC) for GE HealthCare Technologies Inc. has shown some fluctuation over the period from September 2023 to December 2024.
The ROTC was 14.51% in September 2023 and increased to 15.64% by December 2023, indicating an improvement in the company's ability to generate returns from the total capital employed in its operations.
However, there was a slight decline in ROTC to 15.43% in March 2024 followed by a further decrease to 15.30% in June 2024. This suggests some variability in the company's efficiency in utilizing its total capital to generate profits during these periods.
Subsequently, in September 2024, the ROTC decreased to 14.26%, showing a decline in the company's profitability relative to its total capital.
The last reported ROTC figure in December 2024 rebounded to 16.51%, indicating a significant improvement in the company's return on total capital.
Overall, GE HealthCare Technologies Inc.'s ROTC has displayed fluctuations over the given period, with some quarters showing improvements while others experiencing declines. It is essential for the company to monitor and analyze these trends to ensure sustained profitability and efficient use of its total capital resources.
Peer comparison
Dec 31, 2024