Somnigroup International Inc. (SGI)
Return on total capital
| Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 609,600 | 590,500 | 575,400 | 586,700 | 628,300 | 646,200 | 630,600 | 677,700 | 783,600 | 832,600 | 895,500 | 889,100 | 828,500 | 760,700 | 608,200 | 528,400 | 420,400 | 358,800 | 385,700 | 349,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,502,600 |
| Total stockholders’ equity | US$ in thousands | 573,200 | 420,700 | 335,400 | 333,400 | 223,700 | 147,500 | 43,600 | -12,300 | -143,300 | -180,900 | -91,300 | 285,800 | 371,000 | 410,100 | 327,200 | 503,600 | 456,200 | 249,700 | 208,400 | 359,500 |
| Return on total capital | 106.35% | 140.36% | 171.56% | 175.97% | 280.87% | 438.10% | 1,446.33% | — | — | — | — | 311.09% | 223.32% | 185.49% | 185.88% | 104.92% | 92.15% | 143.69% | 185.08% | 18.79% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $609,600K ÷ ($—K + $573,200K)
= 106.35%
Somnigroup International Inc.'s return on total capital has displayed significant volatility over the reporting periods provided. The return on total capital ranged from 18.79% as of December 31, 2019, to a high of 1,446.33% as of March 31, 2023. This indicates a substantial increase in the profitability of the company in that specific period.
The return on total capital saw a notable decline in the subsequent periods, reaching 106.35% as of September 30, 2024. Such fluctuations in return on total capital could be indicative of shifts in the company's financial performance, capital structure, and investment decisions.
Investors and stakeholders should further investigate the reasons behind these drastic fluctuations in return on total capital to assess the sustainability and consistency of Somnigroup International Inc.'s financial performance and operational efficiency. Additionally, monitoring future trends in this ratio will be crucial in evaluating the company's ability to generate returns on its total capital effectively.
Peer comparison
Sep 30, 2024