Haemonetics Corporation (HAE)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	164,883	156,033	80,750	89,747	103,351
Long-term debt	US$ in thousands	797,564	754,102	559,441	690,592	305,513
Total stockholders’ equity	US$ in thousands	959,959	817,997	749,424	731,670	587,109
Return on total capital		9.38%	9.93%	6.17%	6.31%	11.58%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $164,883K ÷ ($797,564K + $959,959K)
= 9.38%

Haemonetics Corporation's return on total capital has displayed some fluctuations over the past five years, ranging from a high of 11.58% in 2020 to a low of 6.17% in 2022. The return on total capital for the most recent fiscal year ending March 31, 2024, stands at 9.38%. This ratio indicates the company's ability to generate profits from the total capital employed in its operations.

While the declining trend from 2020 to 2022 may raise concerns, the slight rebound in 2023 and 2024 suggests a potential improvement in the company's capital utilization efficiency. It is essential for investors and stakeholders to closely monitor future trends in the return on total capital to assess Haemonetics Corporation's operational performance and profitability relative to the capital invested.