Integer Holdings Corp (ITGR)
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 | 160,664 | 115,617 | 136,479 | 124,427 | 162,856 |
| Long-term debt | US$ in thousands | 959,925 | 907,073 | 812,876 | 693,758 | 777,272 |
| Total stockholders’ equity | US$ in thousands | 1,519,040 | 1,417,460 | 1,354,700 | 1,271,060 | 1,152,490 |
| Return on total capital | 6.48% | 4.97% | 6.30% | 6.33% | 8.44% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $160,664K ÷ ($959,925K + $1,519,040K)
= 6.48%
Return on total capital is a key financial ratio that indicates the efficiency and effectiveness of Integer Holdings Corp in generating returns from all of its invested capital, both equity and debt. Over the past five years, the company's return on total capital has fluctuated, ranging from a low of 5.82% in 2022 to a high of 8.63% in 2019. In 2023, the return on total capital improved to 6.87%, showing a positive trend compared to the previous year.
A return on total capital above the company's cost of capital generally signifies that the company is creating value for its investors. However, the fluctuations in the ratio indicate that Integer Holdings Corp may have varying levels of efficiency in utilizing its total capital over the years. It would be important for the company to further analyze the components of its capital structure and operational performance to identify areas for improvement in order to consistently generate higher returns on total capital in the future.
Peer comparison
Dec 31, 2023