Haemonetics Corporation (HAE)
Return on total capital
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 121,265 | 172,429 | 159,378 | 164,979 | 178,882 | 162,973 | 160,274 | 178,925 | 156,033 | 139,977 | 132,270 | 110,048 | 80,671 | 40,297 | 45,150 | 79,422 | 89,747 | 136,929 | 137,411 | 128,368 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 951,605 | 906,860 | 878,851 | 905,368 | 959,959 | 943,319 | 893,660 | 864,616 | 817,997 | 775,979 | 729,009 | 770,423 | 749,424 | 730,775 | 698,549 | 677,080 | 731,670 | 719,152 | 667,923 | 608,569 |
| Return on total capital | 12.74% | 19.01% | 18.13% | 18.22% | 18.63% | 17.28% | 17.93% | 20.69% | 19.08% | 18.04% | 18.14% | 14.28% | 10.76% | 5.51% | 6.46% | 11.73% | 12.27% | 19.04% | 20.57% | 21.09% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $121,265K ÷ ($—K + $951,605K)
= 12.74%
Haemonetics Corporation's return on total capital has shown fluctuations over the specified periods. The company's return on total capital was relatively high in the quarters ending June 30, 2020 and September 30, 2020, where it stood at 21.09% and 20.57%, respectively. This indicates that the company was efficiently utilizing its total capital to generate profits during that time.
However, the return on total capital started declining gradually from December 31, 2020 to June 30, 2021, dropping to 11.73%. This downward trend continued until September 30, 2021, when it decreased to 6.46%, reflecting potential issues with capital allocation or operational performance.
There was a slight improvement in the return on total capital from that point onward, with an increase to 18.14% as of September 30, 2022. The trend continued positively, reaching a peak of 20.69% on June 30, 2023, indicating better utilization of capital and potentially improved profitability.
The return on total capital experienced some fluctuations in the following periods but generally stayed within a range of 17-19%, reflecting stability in the company's overall capital efficiency.
However, there was a notable decline in the return on total capital to 12.74% as at March 31, 2025. It would be essential for Haemonetics Corporation to closely monitor and address the factors contributing to this decrease to ensure sustainable profitability and effective capital management in the future.
Peer comparison
Mar 31, 2025