Envista Holdings Corp (NVST)
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 | 8,500 | 327,400 | 385,600 | 33,300 | 270,700 |
| Long-term debt | US$ in thousands | 1,398,100 | 870,700 | 883,400 | 907,700 | 1,321,000 |
| Total stockholders’ equity | US$ in thousands | 4,173,900 | 4,206,900 | 4,057,600 | 3,720,600 | 3,540,200 |
| Return on total capital | 0.15% | 6.45% | 7.80% | 0.72% | 5.57% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,500K ÷ ($1,398,100K + $4,173,900K)
= 0.15%
Envista Holdings Corp's return on total capital has varied over the past five years. In 2023, the return on total capital was 5.10%, showing a slight decline from 5.71% in 2022 and 5.70% in 2021. This indicates a relatively consistent performance in utilizing its total capital to generate profits in these years.
However, in 2020, there was a significant drop in the return on total capital to 0.60%, which may raise concerns about the company's efficiency in deploying its total capital effectively during that period. The return rebounded to 5.70% in 2019, reflecting a recovery or improvement in capital utilization efficiency.
Overall, Envista Holdings Corp's return on total capital has shown some fluctuations, with the company achieving the highest return in 2022 compared to the other years analyzed. This metric is essential as it indicates how well the company is generating profit from its total capital investments.
Peer comparison
Dec 31, 2023