Masimo Corporation (MASI)
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 | 138,400 | 174,800 | 209,700 | 204,200 | 225,300 | 228,858 | 234,729 | 268,964 | 274,767 | 264,625 | 258,193 | 256,566 | 264,003 | 261,741 | 255,039 | 246,944 | 234,493 | 225,609 | 220,848 | 218,312 |
| Long-term debt | US$ in thousands | 871,700 | 910,100 | 888,800 | 897,500 | 941,600 | 951,400 | 922,400 | — | 0 | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,364,800 | 1,275,600 | 1,308,300 | 1,330,300 | 1,338,900 | 1,252,600 | 1,202,700 | 1,582,140 | 1,550,200 | 1,468,150 | 1,391,240 | 1,328,120 | 1,407,640 | 1,414,800 | 1,344,540 | 1,253,280 | 1,167,870 | 1,108,360 | 1,039,870 | 1,005,080 |
| Return on total capital | 6.19% | 8.00% | 9.54% | 9.17% | 9.88% | 10.38% | 11.05% | 17.00% | 17.72% | 18.02% | 18.56% | 19.32% | 18.76% | 18.50% | 18.97% | 19.70% | 20.08% | 20.36% | 21.24% | 21.72% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $138,400K ÷ ($871,700K + $1,364,800K)
= 6.19%
Masimo Corporation's return on total capital has been relatively stable over the past few quarters, ranging from 6.19% to 21.72%. The trend shows a gradual increase in return on total capital from the end of 2019 to the first quarter of 2021, with the metric peaking at 21.72%. However, since then, there has been a slight decline in return on total capital, with the latest figure reported at 6.19%.
Overall, Masimo Corporation has maintained a healthy return on total capital, indicating the company's efficiency in generating profits relative to the total capital employed in its operations. The fluctuations in the return on total capital over the periods may suggest changes in the company's operational performance, profitability, or capital structure, which could be further explored to understand the factors driving these variations.
Peer comparison
Dec 31, 2023