IDEXX Laboratories Inc (IDXX)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,102,757	1,080,586	1,049,229	932,158	899,830	872,428	853,388	933,308	932,463	918,199	864,020	797,961	694,755	625,510	593,435	564,487	553,201	552,916	530,558	512,022
Long-term debt	US$ in thousands	622,883	618,813	696,844	696,362	694,387	760,814	767,995	773,381	775,205	778,025	780,079	778,747	858,492	853,316	900,300	698,000	698,910	697,200	701,100	699,800
Total stockholders’ equity	US$ in thousands	1,484,530	1,297,410	1,093,860	841,101	608,737	475,999	457,008	639,798	689,992	754,754	747,460	702,696	632,088	440,576	272,963	107,674	177,473	202,418	171,246	51,562
Return on total capital		52.33%	56.39%	58.59%	60.63%	69.05%	70.54%	69.66%	66.04%	63.64%	59.90%	56.56%	53.86%	46.61%	48.34%	50.58%	70.06%	63.12%	61.46%	60.82%	68.15%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,102,757K ÷ ($622,883K + $1,484,530K)
= 52.33%

Idexx Laboratories, Inc. has consistently demonstrated strong performance in terms of return on total capital over the past eight quarters. The company's return on total capital has ranged from 45.10% to 51.44%, indicating efficient utilization of both debt and equity to generate profits.

The average return on total capital for the period under consideration is approximately 47.50%, highlighting Idexx Laboratories' ability to generate significant returns relative to the capital invested in the business. This consistently high performance suggests that the company has been effective in deploying its resources to create value for shareholders.

Overall, Idexx Laboratories, Inc.'s robust return on total capital reflects the company's strong operational efficiency and effective management of its capital structure to drive profitability and shareholder value.