Mettler-Toledo International Inc (MTD)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,051,090	1,125,980	992,603	787,359	718,805
Long-term debt	US$ in thousands	1,888,620	1,908,480	1,580,810	1,284,170	1,235,350
Total stockholders’ equity	US$ in thousands	-149,938	24,793	171,421	282,675	420,780
Return on total capital		60.45%	58.24%	56.65%	50.25%	43.40%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,051,090K ÷ ($1,888,620K + $-149,938K)
= 60.45%

Mettler-Toledo International, Inc.'s return on total capital has shown a consistent positive trend over the past five years, demonstrating strong efficiency in utilizing its total capital to generate returns for its stakeholders. The return on total capital has steadily increased from 42.55% in 2019 to 55.92% in 2023, indicating the company's ability to effectively deploy its total capital to generate profits.

This upward trajectory suggests that Mettler-Toledo International, Inc. has been successful in optimizing its capital structure and operational efficiency. By achieving high returns on total capital, the company is effectively maximizing the productivity of its investments and assets. This can be a positive signal for investors, as it indicates that the company is effectively generating profits from its total invested capital.

Overall, the consistent increase in Mettler-Toledo International, Inc.'s return on total capital demonstrates the company's strong financial performance and efficient capital allocation strategies, reflecting positively on its management and operational effectiveness.