Sotera Health Co (SHC)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	276,692	248,350	256,733
Long-term debt	US$ in thousands	2,223,670	1,747,120	1,743,530
Total stockholders’ equity	US$ in thousands	443,734	350,238	586,096
Return on total capital		10.37%	11.84%	11.02%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $276,692K ÷ ($2,223,670K + $443,734K)
= 10.37%

Sotera Health Co's return on total capital has shown a consistent trend over the past five years. The company's return on total capital has ranged from 8.59% in 2019 to 10.83% in 2021, with a slight decrease to 10.08% in 2023. This indicates that the company has been effectively utilizing its total capital to generate profits for its stakeholders. Overall, Sotera Health Co's return on total capital demonstrates a stable performance and a sound financial position over the years.

Peer comparison

Dec 31, 2023

Company name

Symbol

Return on total capital

Sotera Health Co

SHC

10.37%

DaVita HealthCare Partners Inc