Somnigroup International Inc. (SGI)
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 | 639,100 | 604,000 | 680,200 | 890,300 | 529,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 559,000 | 323,400 | -22,100 | 285,800 | 503,600 |
| Return on total capital | 114.33% | 186.77% | — | 311.51% | 105.12% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $639,100K ÷ ($—K + $559,000K)
= 114.33%
Somnigroup International Inc.'s return on total capital has shown significant fluctuations over the years. The company achieved a return on total capital of 105.12% as of December 31, 2020, which increased substantially to 311.51% by December 31, 2021. However, there is missing data for December 31, 2022, so it is difficult to accurately assess the performance for that year.
The return on total capital decreased to 186.77% as of December 31, 2023, indicating a slight decline in the company's efficiency in generating returns from its total capital. By December 31, 2024, the return on total capital further decreased to 114.33%, suggesting a continued decrease in the company's profitability relative to its total capital.
Overall, the return on total capital for Somnigroup International Inc. has exhibited a mix of strong performance and some declines in recent years, highlighting the need for continual monitoring and evaluation of the company's capital allocation and operational efficiency.
Peer comparison
Dec 31, 2024