Intuitive Surgical Inc (ISRG)
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 | 2,348,900 | 1,766,800 | 1,577,100 | 1,821,000 | 1,049,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 16,433,700 | 13,307,600 | 11,041,900 | 11,901,100 | 9,731,500 |
| Return on total capital | 14.29% | 13.28% | 14.28% | 15.30% | 10.79% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,348,900K ÷ ($—K + $16,433,700K)
= 14.29%
Intuitive Surgical Inc's return on total capital has exhibited a positive trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 10.79% in 2020, the return on total capital increased to 15.30% in 2021, indicating improved efficiency in generating returns relative to the total capital employed. Subsequently, there was a slight decline to 14.28% in 2022, followed by a further decrease to 13.28% in 2023. However, the return on total capital rebounded in 2024 to 14.29%.
Overall, the fluctuation in Intuitive Surgical Inc's return on total capital suggests varying levels of effectiveness in utilizing total capital to generate profits during the period under review. It is important for investors and stakeholders to monitor these ratios to assess the company's efficiency in deploying capital resources for sustainable growth and profitability.
Peer comparison
Dec 31, 2024