Intuitive Surgical Inc (ISRG)

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	1,766,800	1,689,100	1,622,200	1,556,600	1,577,100	1,655,000	1,698,700	1,812,300	1,821,000	1,786,400	1,614,200	1,183,600	1,049,800	1,031,600	1,126,900	1,405,300	1,374,500	1,308,900	1,256,500	1,174,900
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	13,307,600	12,539,000	11,879,100	11,217,700	11,041,900	11,515,400	12,023,000	12,102,300	11,901,100	11,410,900	10,837,500	10,153,500	9,731,500	9,257,800	8,740,500	8,506,700	8,263,800	7,761,400	7,265,300	7,024,200
Return on total capital		13.28%	13.47%	13.66%	13.88%	14.28%	14.37%	14.13%	14.97%	15.30%	15.66%	14.89%	11.66%	10.79%	11.14%	12.89%	16.52%	16.63%	16.86%	17.29%	16.73%

December 31, 2023 calculation

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

Intuitive Surgical Inc's return on total capital has been relatively stable over the past eight quarters, ranging from 13.28% to 14.97%. The return on total capital indicates the efficiency and profitability of the company in generating returns from its total capital employed, which includes both debt and equity.

The consecutive quarters of double-digit return on total capital reflect the company's ability to effectively utilize its capital to generate profits. The slight fluctuations in the percentage indicate some variations in the company's performance but overall, the trend suggests a consistent and healthy return on investment for shareholders and debt providers.

Intuitive Surgical Inc's ability to maintain a double-digit return on total capital demonstrates its solid financial position and efficient allocation of resources to generate profits. This metric is essential for investors and stakeholders to assess the company's financial health and performance over time.