ICU Medical Inc (ICUI)
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 | 40,529 | 24,428 | -67,255 | 124,166 | 99,247 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,965,240 | 2,123,410 | 2,089,930 | 1,616,030 | 1,502,260 |
| Return on total capital | 2.06% | 1.15% | -3.22% | 7.68% | 6.61% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $40,529K ÷ ($—K + $1,965,240K)
= 2.06%
Based on the data provided, the return on total capital for ICU Medical Inc has been fluctuating over the years. In 2020, the company's return on total capital was 6.61%, which increased to 7.68% in 2021, indicating an improvement in the company's profitability in generating returns from its total capital.
However, in 2022, ICU Medical Inc experienced a significant decrease in its return on total capital to -3.22%, suggesting that the company may have struggled to efficiently utilize its capital during that period. The return on total capital slightly recovered in the following years, with 1.15% in 2023 and 2.06% in 2024, but it remained relatively low compared to the initial increase in 2021.
Overall, ICU Medical Inc's return on total capital has shown variability over the years, indicating potential challenges in consistently generating returns from its total invested capital. It would be advisable for the company to assess its capital allocation strategies and operational efficiency to enhance profitability and sustainable growth in the future.
Peer comparison
Dec 31, 2024