Merit Medical Systems Inc (MMSI)

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	127,600	123,470	107,840	101,307	88,969	77,941	73,918	60,120	59,178	53,075	37,678	9,842	-3,237	-23,264	-25,552	6,147	14,605	33,955	57,944	60,733
Long-term debt	US$ in thousands	823,013	282,370	335,232	186,423	186,759	205,412	235,703	243,112	234,397	271,181	284,900	312,875	343,722	349,813	402,915	438,137	431,984	432,456	385,221	362,187
Total stockholders’ equity	US$ in thousands	1,202,000	1,229,880	1,203,700	1,171,660	1,144,400	1,088,840	1,073,310	1,056,520	1,039,800	1,013,380	992,434	976,692	958,575	933,837	928,847	939,798	949,944	949,241	950,675	940,111
Return on total capital		6.30%	8.16%	7.01%	7.46%	6.68%	6.02%	5.65%	4.63%	4.64%	4.13%	2.95%	0.76%	-0.25%	-1.81%	-1.92%	0.45%	1.06%	2.46%	4.34%	4.66%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $127,600K ÷ ($823,013K + $1,202,000K)
= 6.30%

The return on total capital for Merit Medical Systems, Inc. has fluctuated over the past year, ranging from a low of 6.29% in Q4 2023 to a high of 8.26% in Q3 2023. This metric indicates the efficiency and effectiveness of the company in generating profits from the total capital invested in its operations. Although there have been variations in the return on total capital, the figures generally show a moderate level of performance, with the company consistently achieving returns above 6% in each quarter.

Overall, the trend in the return on total capital suggests that Merit Medical Systems, Inc. has been able to effectively utilize its capital to generate profits, demonstrating a reasonable level of financial performance and efficiency in capital management. It is important for the company to continue monitoring and improving this metric to ensure sustained profitability and long-term success.