IDEXX Laboratories Inc (IDXX)

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	1,141,040	1,097,130	898,765	932,028	694,524
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,595,310	1,484,530	608,737	689,992	632,088
Return on total capital		71.52%	73.90%	147.64%	135.08%	109.88%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,141,040K ÷ ($—K + $1,595,310K)
= 71.52%

The return on total capital for IDEXX Laboratories Inc has been showing a generally positive trend over the years. As of December 31, 2020, the return on total capital stood at an impressive 109.88%, indicating that the company generated significant returns relative to its total capital employed.

This figure increased to 135.08% by December 31, 2021, demonstrating continued efficiency in capital utilization. By December 31, 2022, the return on total capital further improved to 147.64%, reflecting the company's ability to generate even higher returns on its total capital base.

However, there was a slight decline in performance by December 31, 2023, with the return on total capital dropping to 73.90%. This decrease may suggest a potential decrease in efficiency or profitability relative to the capital employed during that period.

By December 31, 2024, the return on total capital decreased further to 71.52%, indicating a continued dip in the company's ability to generate returns on its total capital.

Overall, while IDEXX Laboratories Inc has shown strong performance in generating returns on total capital in recent years, the declining trend in the most recent periods warrants further analysis to understand the factors contributing to this decrease and the company's ongoing capital efficiency.