Hologic Inc (HOLX)
Return on total capital
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 737,300 | 787,200 | 781,000 | 1,012,300 | 1,302,800 | 1,683,200 | 1,949,000 | 2,037,000 | 2,241,800 | 2,454,700 | 2,663,400 | 2,500,100 | 1,848,500 | 1,118,200 | 388,300 | 341,900 | -127,200 | -117,000 | 76,500 | 66,900 |
| Long-term debt | US$ in thousands | 2,522,700 | 2,531,200 | 2,789,300 | 2,797,700 | 2,806,200 | 2,808,400 | 2,814,600 | 2,813,400 | 2,819,600 | 2,712,200 | 2,654,700 | 2,672,100 | 2,689,500 | 2,713,900 | 2,731,300 | 2,749,300 | 2,769,400 | 2,783,600 | 2,791,600 | 2,799,700 |
| Total stockholders’ equity | US$ in thousands | 4,653,800 | 5,016,900 | 5,182,000 | 5,300,800 | 5,092,500 | 4,876,200 | 4,997,900 | 4,792,700 | 4,519,100 | 4,218,600 | 3,877,100 | 3,794,400 | 3,267,900 | 2,705,200 | 2,255,100 | 2,086,100 | 2,250,800 | 2,115,700 | 2,216,500 | 2,159,800 |
| Return on total capital | 10.27% | 10.43% | 9.80% | 12.50% | 16.49% | 21.90% | 24.95% | 26.78% | 30.55% | 35.42% | 40.78% | 38.66% | 31.03% | 20.63% | 7.79% | 7.07% | -2.53% | -2.39% | 1.53% | 1.35% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $737,300K ÷ ($2,522,700K + $4,653,800K)
= 10.27%
The return on total capital for Hologic Inc has exhibited fluctuations over the past few quarters. The trend shows a gradual decline from 40.78% in June 2021 to 10.27% in December 2023. Notably, there was a significant peak in return on total capital at 40.78% in June 2021, followed by a subsequent decrease in the following periods.
Despite the fluctuations, the return on total capital has generally been positive, with some quarters showing high returns exceeding 20% and even reaching 35.42% in September 2021. However, there were also periods with lower returns, such as negative returns in the first quarter of 2020 and 2019.
Overall, the return on total capital for Hologic Inc has shown variability but has generally remained positive, indicating the company's ability to generate profits relative to its total capital employed. Investors and analysts may need to closely monitor this metric to assess the company's efficiency in utilizing its capital resources for generating returns in the future.
Peer comparison
Dec 31, 2023