Masimo Corporation (MASI)
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 | -266,700 | 138,400 | 210,000 | 274,739 | 264,002 |
| Long-term debt | US$ in thousands | 727,900 | 871,700 | 941,600 | 0 | — |
| Total stockholders’ equity | US$ in thousands | 1,051,900 | 1,364,800 | 1,338,900 | 1,550,200 | 1,407,640 |
| Return on total capital | -14.98% | 6.19% | 9.21% | 17.72% | 18.75% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-266,700K ÷ ($727,900K + $1,051,900K)
= -14.98%
Masimo Corporation's return on total capital has shown a declining trend over the years. The ratio stood at 18.75% on December 31, 2020, and gradually decreased to 17.72% on December 31, 2021. However, there was a more significant drop to 9.21% by December 31, 2022, followed by a further decline to 6.19% on December 31, 2023. The most concerning development was the negative return on total capital of -14.98% on December 31, 2024. This indicates that Masimo's capital efficiency has deteriorated significantly, resulting in a negative return on its total capital investment. Further analysis of the company's financial performance and operational activities would be necessary to understand the reasons behind this sharp decline and assess the potential implications for the company's financial health and future prospects.
Peer comparison
Dec 31, 2024