OSI Systems Inc (OSIS)

Return on total capital

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	189,061	183,394	166,368	139,538	135,279	117,685	111,774	115,369	121,749	116,046	120,086	123,358	115,371	104,973	96,132	96,693	104,887	109,121	117,616	116,404
Long-term debt	US$ in thousands	129,383	131,214	132,792	134,746	136,491	138,190	140,057	143,150	48,668	48,708	602	692	276,421	273,997	271,667	269,356	267,072	264,777	262,326	260,007
Total stockholders’ equity	US$ in thousands	863,483	813,413	770,443	724,457	726,165	666,917	647,754	624,653	638,424	618,494	620,148	623,312	639,820	615,893	587,636	557,540	572,152	552,276	557,716	541,564
Return on total capital		19.04%	19.41%	18.42%	16.24%	15.68%	14.62%	14.19%	15.03%	17.72%	17.39%	19.35%	19.77%	12.59%	11.80%	11.19%	11.69%	12.50%	13.36%	14.34%	14.52%

June 30, 2024 calculation

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

OSI Systems Inc's return on total capital has shown some variability over the past few quarters. The return on total capital was relatively high in the most recent quarter at 19.04%, maintaining a strong performance compared to the prior periods. This indicates that OSI Systems Inc has been effective in generating returns from the capital invested in the business.

Looking at the trend over the past eight quarters, the return on total capital has generally been above 10%, with some fluctuations. There was a notable increase in the return on total capital in the second and third quarters of 2021, reaching above 19%, signifying a period of strong performance for the company.

Overall, OSI Systems Inc's return on total capital has demonstrated a positive trend, reflecting the company's ability to efficiently utilize its capital to generate returns for its investors. It is essential for investors and stakeholders to monitor this ratio to assess the company's profitability and efficiency in capital utilization over time.