Mettler-Toledo International Inc (MTD)
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 | 1,111,850 | 1,051,090 | 1,125,980 | 992,603 | 787,359 |
| Long-term debt | US$ in thousands | 1,831,260 | 1,888,620 | 1,908,480 | 1,580,810 | 1,284,170 |
| Total stockholders’ equity | US$ in thousands | -126,890 | -149,938 | 24,793 | 171,421 | 282,675 |
| Return on total capital | 65.24% | 60.45% | 58.24% | 56.65% | 50.25% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,111,850K ÷ ($1,831,260K + $-126,890K)
= 65.24%
Based on the data provided, Mettler-Toledo International Inc has shown a consistently increasing trend in its return on total capital over the years. The return on total capital has increased from 50.25% as of December 31, 2020, to 65.24% as of December 31, 2024.
This demonstrates the company's ability to generate returns from the total capital employed in its operations. A rising return on total capital indicates that the company is utilizing its capital more efficiently and effectively, which is a positive sign for investors and stakeholders.
The steady improvement in return on total capital reflects positively on Mettler-Toledo's financial performance, showing that the company is effectively managing its capital investments and generating increasing profits relative to the total capital employed.
Peer comparison
Dec 31, 2024