Integra LifeSciences Holdings (IART)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	28,411	132,446	263,488	265,072	165,101
Long-term debt	US$ in thousands	1,087,920	1,395,820	1,300,490	1,388,680	1,408,220
Total stockholders’ equity	US$ in thousands	1,545,280	1,587,880	1,804,400	1,684,800	1,514,870
Return on total capital		1.08%	4.44%	8.49%	8.62%	5.65%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $28,411K ÷ ($1,087,920K + $1,545,280K)
= 1.08%

The return on total capital for Integra LifeSciences Holdings has shown variability over the years based on the provided data. In December 2020, the return on total capital was 5.65%, indicating the company generated a return of 5.65% for every dollar of capital invested.

The return on total capital increased to 8.62% by the end of December 2021, showing a significant improvement in the company's ability to generate returns relative to its total capital base. This could suggest improved efficiency in using capital to generate profits or increased profitability.

In December 2022, the return on total capital slightly decreased to 8.49%, indicating a relatively stable performance in generating returns compared to the previous year.

However, there was a notable decline in the return on total capital by December 2023, dropping to 4.44%. This decrease may raise concerns about the company's efficiency in utilizing its total capital to generate profits or about the profitability of its operations during that period.

By December 2024, the return on total capital further decreased to 1.08%, reflecting a significant decline in the company's ability to generate returns on its total capital. This substantial decline may warrant a closer examination of the company's financial performance and overall capital management strategies.

Overall, the trend in the return on total capital for Integra LifeSciences Holdings indicates a mix of fluctuations and declines over the years, suggesting varying levels of efficiency in utilizing capital to generate returns and highlighting potential areas for further analysis and improvement.