Sotera Health Co (SHC)
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 | 278,565 | 259,861 | -150,741 | 251,093 | 174,453 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 404,911 | 443,734 | 350,238 | 586,096 | 454,574 |
| Return on total capital | 68.80% | 58.56% | -43.04% | 42.84% | 38.38% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $278,565K ÷ ($—K + $404,911K)
= 68.80%
Sotera Health Co's return on total capital has shown significant fluctuations over the years. The company's return on total capital was 38.38% as of December 31, 2020, which increased to 42.84% by December 31, 2021. However, there was a sharp decline to -43.04% by December 31, 2022, indicating that the company may have faced challenges in generating returns on its total capital during that period.
Fortunately, Sotera Health Co managed to recover from this setback, as evidenced by the impressive return on total capital of 58.56% by December 31, 2023, which further improved to 68.80% by December 31, 2024. These positive trends suggest that the company was able to efficiently utilize its total capital to generate higher returns for its stakeholders.
Overall, despite the occasional fluctuations, the upward trajectory of Sotera Health Co's return on total capital indicates the company's ability to effectively manage its capital resources and generate favorable returns over the analyzed period.
Peer comparison
Dec 31, 2024