IDEXX Laboratories Inc (IDXX)

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	1,102,760	899,830	932,463	694,755	553,201
Long-term debt	US$ in thousands	622,883	694,387	775,205	858,492	698,910
Total stockholders’ equity	US$ in thousands	1,484,530	608,737	689,992	632,088	177,473
Return on total capital		52.33%	69.05%	63.64%	46.61%	63.12%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,102,760K ÷ ($622,883K + $1,484,530K)
= 52.33%

Idexx Laboratories, Inc. has consistently demonstrated strong returns on total capital over the past five years. The return on total capital ranged from 45.08% to 57.76% during this period, with the highest return recorded in 2021. This indicates that the company has been effectively utilizing its capital to generate profits. The slightly lower returns in 2020 and 2023 compared to 2021 and 2019 suggest potential fluctuations in the company's performance but overall, Idexx Laboratories has maintained a robust performance in terms of generating returns on total capital. This consistent performance bodes well for the company's financial health and efficiency in capital allocation.