Hologic Inc (HOLX)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 787,200 | 1,683,300 | 2,456,500 | 1,123,100 | -116,900 |
| Long-term debt | US$ in thousands | 2,531,200 | 2,808,400 | 2,712,200 | 2,713,900 | 2,783,600 |
| Total stockholders’ equity | US$ in thousands | 5,016,900 | 4,876,200 | 4,218,600 | 2,705,200 | 2,115,700 |
| Return on total capital | 10.43% | 21.90% | 35.44% | 20.72% | -2.39% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $787,200K ÷ ($2,531,200K + $5,016,900K)
= 10.43%
Hologic, Inc.'s return on total capital has exhibited fluctuations over the past five years. The return on total capital was 11.98% as of September 30, 2023, a significant decrease from 21.35% in the previous year. This decline suggests that the company's ability to generate profits from its total capital has weakened. However, in comparison to the 19.96% reported in September 2020 and the 10.85% in September 2019, the current return on total capital remains relatively favorable. It is important to conduct further analysis to understand the drivers behind this change and its implications for the company's financial performance.
Peer comparison
Sep 30, 2023