Omnicell Inc (OMCL)
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 | — | -34,868 | -2,323 | 89,507 | 35,526 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,243,310 | 1,188,950 | 1,130,140 | 1,146,690 | 967,503 |
| Return on total capital | 0.00% | -2.93% | -0.21% | 7.81% | 3.67% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,243,310K)
= 0.00%
Omnicell Inc's return on total capital has shown significant fluctuations over the past five years. In 2020, the return on total capital was 3.67%, which increased to 7.81% in 2021, indicating improved efficiency in generating profits relative to the total capital employed. However, there was a considerable decline in 2022, with a negative return of -0.21%, which further worsened to -2.93% in 2023. This negative trend suggests that the company's capital utilization may have been inefficient, resulting in a loss on the capital employed. In 2024, the return on total capital recovered to 0.00%, but it remained at breakeven, indicating that Omnicell Inc may still be facing challenges in optimizing its capital resources effectively. Overall, these fluctuations in return on total capital demonstrate the importance of closely monitoring and managing capital allocation strategies to ensure sustained profitability and value creation for the company and its stakeholders.
Peer comparison
Dec 31, 2024