Merit Medical Systems Inc (MMSI)
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 | 155,693 | 127,600 | 88,968 | 59,178 | -3,237 |
| Long-term debt | US$ in thousands | 729,551 | 823,013 | 186,759 | 234,397 | 343,722 |
| Total stockholders’ equity | US$ in thousands | 1,379,360 | 1,202,000 | 1,144,400 | 1,039,800 | 958,575 |
| Return on total capital | 7.38% | 6.30% | 6.68% | 4.64% | -0.25% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $155,693K ÷ ($729,551K + $1,379,360K)
= 7.38%
Merit Medical Systems Inc's return on total capital has shown a positive trend over the past five years, indicating a gradual improvement in capital efficiency. The ratio stood at -0.25% on December 31, 2020, which suggests a slight inefficiency in utilizing total capital. However, by December 31, 2024, the return on total capital had increased to 7.38%, reflecting a steady enhancement in the company's ability to generate returns from its total capital employed. This positive trajectory indicates that Merit Medical Systems Inc has been effectively utilizing its resources to generate profits and create value for its stakeholders.
Peer comparison
Dec 31, 2024