Merit Medical Systems Inc (MMSI)
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 | 162,165 | 162,045 | 159,847 | 142,483 | 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 |
| Long-term debt | US$ in thousands | 729,551 | 750,505 | 801,321 | 800,136 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,379,360 | 1,323,410 | 1,282,440 | 1,240,190 | 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 |
| Return on total capital | 7.69% | 7.81% | 7.67% | 6.98% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $162,165K ÷ ($729,551K + $1,379,360K)
= 7.69%
The return on total capital for Merit Medical Systems Inc has exhibited fluctuation over the period from March 31, 2020, to December 31, 2024. The ratio started at a modest 0.45% in March 2020, dipped into negative territory in the following quarters, and then steadily improved reaching 7.81% by September 30, 2024. This improvement indicates the company's ability to generate higher returns relative to the total capital employed in its operations. Despite some variability, the return on total capital generally experienced an upward trend, with some minor fluctuations along the way. This suggests that the company has been effectively utilizing its capital to generate returns for its stakeholders. It is important for the company to sustain and potentially enhance this performance to continue creating value for investors.
Peer comparison
Dec 31, 2024