Owens & Minor Inc (OMI)
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 | 103,189 | 139,782 | 324,844 | 135,103 | 29,607 |
| Long-term debt | US$ in thousands | — | — | — | 986,018 | 1,508,420 |
| Total stockholders’ equity | US$ in thousands | 924,166 | 945,604 | 938,501 | 712,054 | 462,154 |
| Return on total capital | 11.17% | 14.78% | 34.61% | 7.96% | 1.50% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $103,189K ÷ ($—K + $924,166K)
= 11.17%
Owens & Minor, Inc.'s return on total capital has demonstrated fluctuations over the past five years. In 2023, the return on total capital was 6.74%, showing an improvement from the previous year's 5.77%. Despite this increase, the return on total capital remains relatively moderate compared to the exceptional performance seen in 2021 when it stood at 21.34%, reflecting a significant decline since then. The company's return on total capital in 2020 was 14.24%, indicating a decrease compared to 2021 but still higher than the figures in 2019, where it was at 5.24%.
Overall, while Owens & Minor, Inc. has shown some variability in its return on total capital over the past five years, it is important to assess the reasons behind these fluctuations to understand the company's operational efficiency and capital utilization in generating returns for its investors.
Peer comparison
Dec 31, 2023