OSI Systems Inc (OSIS)

Return on total capital

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	189,061	135,279	121,749	115,371	104,887
Long-term debt	US$ in thousands	129,383	136,491	48,668	276,421	267,072
Total stockholders’ equity	US$ in thousands	863,483	726,165	638,424	639,820	572,152
Return on total capital		19.04%	15.68%	17.72%	12.59%	12.50%

June 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $189,061K ÷ ($129,383K + $863,483K)
= 19.04%

Over the past five years, OSI Systems Inc has shown a consistent and generally increasing trend in its return on total capital, a key measure of profitability and efficiency in utilizing its total capital base. The company's return on total capital has improved from 12.50% in 2020 to 19.04% in 2024, indicating the company's ability to generate profits relative to the total capital invested in the business. This upward trend suggests that OSI Systems Inc has been effectively managing its capital resources and generating healthy returns for its investors. Overall, the company's performance in terms of return on total capital has been strong and demonstrates its efficiency in utilizing its capital to drive profitability over the years.