Intuitive Surgical Inc (ISRG)

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	1,766,800	1,577,100	1,821,000	1,049,800	1,374,500
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	13,307,600	11,041,900	11,901,100	9,731,500	8,263,800
Return on total capital		13.28%	14.28%	15.30%	10.79%	16.63%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,766,800K ÷ ($—K + $13,307,600K)
= 13.28%

Intuitive Surgical Inc's return on total capital has shown some fluctuation over the past five years. The company's return on total capital was 13.28% at the end of 2023, down from 14.28% in 2022 and 15.30% in 2021. However, it was higher compared to 10.79% in 2020. Notably, the return on total capital was highest at 16.63% in 2019.

The trend indicates a general stability in the company's ability to generate returns on the total capital employed in its operations, although there was a slight decrease in recent years. This metric is important as it provides insight into how efficiently the company is utilizing its capital to generate profits. Further analysis would be needed to understand the factors contributing to the fluctuations in return on total capital over the years.