Envista Holdings Corp (NVST)
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 | -1,038,200 | 8,500 | 327,400 | 385,600 | 33,300 |
| Long-term debt | US$ in thousands | 1,278,300 | 1,398,100 | 870,700 | 883,400 | 907,700 |
| Total stockholders’ equity | US$ in thousands | 2,934,800 | 4,173,900 | 4,206,900 | 4,057,600 | 3,720,600 |
| Return on total capital | -24.64% | 0.15% | 6.45% | 7.80% | 0.72% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,038,200K ÷ ($1,278,300K + $2,934,800K)
= -24.64%
Envista Holdings Corp's return on total capital has fluctuated significantly over the five-year period from 2020 to 2024.
- In 2020, the return on total capital was a modest 0.72%, indicating that the company generated a minimal return on the total capital invested.
- The following year, in 2021, there was a significant improvement with a return on total capital of 7.80%, suggesting improved efficiency in utilizing the total capital to generate profits.
- In 2022, the return on total capital slightly decreased to 6.45%, still indicating a relatively healthy return on the total capital employed.
- However, in 2023, there was a sharp drop in the return on total capital to 0.15%, signifying a significant decline in the company's effectiveness in generating profits relative to the total capital invested.
- The trend worsened in 2024, with a negative return on total capital of -24.64%, which implies that the company not only failed to generate profits but also incurred significant losses in relation to the total capital invested.
Overall, the fluctuations in Envista Holdings Corp's return on total capital indicate varying levels of efficiency in utilizing the total capital to generate profits over the five-year period, with a significant decline in performance in 2024.
Peer comparison
Dec 31, 2024