Masimo Corporation (MASI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -263,800 | 132,200 | 128,900 | 137,200 | 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 |
| Long-term debt | US$ in thousands | 727,900 | 733,200 | 746,500 | 841,400 | 871,700 | 910,100 | 888,800 | 897,500 | 941,600 | 951,400 | 922,400 | — | 0 | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,051,900 | 1,463,200 | 1,368,800 | 1,365,200 | 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 |
| Return on total capital | -14.82% | 6.02% | 6.09% | 6.22% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-263,800K ÷ ($727,900K + $1,051,900K)
= -14.82%
The return on total capital for Masimo Corporation has shown a general declining trend over the periods from March 2020 to December 2024. Starting at 19.70% in March 2020, the return gradually decreased to 6.02% by September 2024, before sharply dropping to -14.82% in December 2024.
This declining trend indicates that the company's ability to generate returns on its total capital has weakened over time. A negative return on total capital in the most recent period suggests that the company's capital may not be effectively utilized, potentially signaling operational or financial challenges.
Further analysis and investigation into the factors contributing to these fluctuations in return on total capital would be necessary to understand the underlying reasons for the declining trend and the negative return observed in December 2024.
Peer comparison
Dec 31, 2024