Hologic Inc (HOLX)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 987,200 | 787,200 | 1,683,300 | 2,456,500 | 1,123,100 |
| Long-term debt | US$ in thousands | 2,497,100 | 2,531,200 | 2,808,400 | 2,712,200 | 2,713,900 |
| Total stockholders’ equity | US$ in thousands | 5,130,000 | 5,016,900 | 4,876,200 | 4,218,600 | 2,705,200 |
| Return on total capital | 12.94% | 10.43% | 21.90% | 35.44% | 20.72% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $987,200K ÷ ($2,497,100K + $5,130,000K)
= 12.94%
Hologic Inc's return on total capital has exhibited fluctuations over the past five years. The return on total capital was 12.94% in 2024, showing an improvement compared to the prior year but still lower than the peak in 2021 when it stood at 35.44%. In 2023, the return on total capital was 10.43%, indicating a slight increase compared to 2022. However, the company experienced a significant decline in 2022 from the previous year where the return on total capital was at its highest at 21.90%.
Overall, the return on total capital for Hologic Inc has shown variability, likely influenced by changes in the company's efficiency in generating profits relative to its invested capital. An upward trend in the return on total capital reflects improved profitability and operational efficiency, while a decline may suggest challenges in utilizing capital effectively to generate returns. It is essential for stakeholders to monitor these trends to assess the company's financial performance and strategic utilization of capital resources.
Peer comparison
Sep 30, 2024