IDEXX Laboratories Inc (IDXX)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,144,932	1,128,180	1,097,152	1,126,172	1,102,340	1,082,669	1,051,712	934,258	902,630	875,228	856,131	936,075	935,262	921,166	867,146	801,119	697,910	628,545	596,269	567,160
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,595,310	1,618,050	1,580,250	1,568,910	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
Return on total capital		71.77%	69.72%	69.43%	71.78%	74.26%	83.45%	96.15%	111.08%	148.28%	183.87%	187.33%	146.31%	135.55%	122.05%	116.01%	114.01%	110.41%	142.66%	218.44%	526.74%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,144,932K ÷ ($—K + $1,595,310K)
= 71.77%

IDEXX Laboratories Inc's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The return on total capital stood at 526.74% as of March 31, 2020, indicating a significant return relative to the total capital employed.

Subsequently, the return on total capital declined to 218.44% as of June 30, 2020, and further decreased to 142.66% as of September 30, 2020. This could indicate a lower return compared to previous periods, potentially due to changes in the company's operations or capital structure.

The return on total capital continued to trend downwards, reaching its lowest point of 69.43% as of June 30, 2024. This downward trend may raise concerns about the company's ability to generate returns on the total capital deployed.

However, there was a slight improvement in the return on total capital in the subsequent quarters, with the ratio increasing to 71.77% as of December 31, 2024. This improvement could suggest that IDEXX Laboratories Inc may be implementing strategies to enhance its capital efficiency and profitability.

Overall, the trend in IDEXX Laboratories Inc's return on total capital reflects fluctuations over the period under consideration, with both peaks and troughs. It would be crucial for investors and stakeholders to monitor this ratio alongside other financial metrics to assess the company's financial performance and capital utilization efficiency effectively.