OSI Systems Inc (OSIS)

Return on total capital

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Earnings before interest and tax (EBIT) US$ in thousands — 188,507 135,279 129,291 115,371
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 951,084 863,483 726,165 638,424 639,820
Return on total capital 0.00% 21.83% 18.63% 20.25% 18.03%

June 30, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $951,084K)
= 0.00%

The analysis of OSI Systems Inc's return on total capital (ROTC) over the specified periods indicates fluctuations in the company's efficiency in generating earnings relative to its total capital base. As of June 30, 2021, the ROTC was 18.03%, reflecting a modest level of profitability generated from the company's total capital resources. This figure increased significantly the following year, reaching 20.25% on June 30, 2022, suggesting an improvement in operational efficiency or profitability relative to total capital employed.

However, in the subsequent year, the return decreased slightly to 18.63% as of June 30, 2023, indicating a potential slowdown or challenges affecting the company's ability to sustain previous levels of profitability from its total capital. The upward trend resumed with a notable increase to 21.83% as of June 30, 2024, implying renewed operational strength or cost efficiencies that enhanced the company's ability to generate returns from its total capital base.

By June 30, 2025, the ROTC was reported as 0.00%, which may suggest a data anomaly, a strategic restructuring, or an extraordinary event impacting the company's profitability assessment. This abrupt decline warrants further investigation to understand the underlying reasons, such as changes in accounting practices, capital reorganization, or other factors affecting the calculation.

Overall, the historical trend exhibits periods of growth and slight retracement, culminating in a significant dip at the most recent date. The pattern underscores the importance of contextual analysis to interpret the underlying factors influencing these fluctuations and assess the company's long-term capital efficiency.