ICU Medical Inc (ICUI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 24,428 | -43,604 | 124,044 | 99,247 | 115,256 |
| Long-term debt | US$ in thousands | 1,577,770 | 1,623,680 | 0 | — | — |
| Total stockholders’ equity | US$ in thousands | 2,123,410 | 2,089,930 | 1,616,030 | 1,502,260 | 1,377,240 |
| Return on total capital | 0.66% | -1.17% | 7.68% | 6.61% | 8.37% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $24,428K ÷ ($1,577,770K + $2,123,410K)
= 0.66%
The return on total capital for ICU Medical, Inc. has fluctuated over the past five years. In 2023, the return on total capital was 1.27%, showing a slight improvement from the negative return of -0.10% in 2022. However, this is significantly lower compared to the returns of 8.74% in 2021, 8.95% in 2020, and 10.62% in 2019.
The declining trend in return on total capital over the years could indicate potential inefficiencies in the company's capital allocation or operational performance. It may be important for ICU Medical, Inc. to further analyze the factors contributing to this decreasing trend to identify areas for improvement and strive towards achieving more consistent and favorable returns on total capital in the future.
Peer comparison
Dec 31, 2023