Sotera Health Co (SHC)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	276,692	232,836	219,933	228,224	248,350	254,608	257,084	263,861	256,733
Long-term debt	US$ in thousands	2,223,670	2,222,790	2,221,990	2,222,330	1,747,120	—	—	1,744,540	1,743,530	—	—	1,837,580
Total stockholders’ equity	US$ in thousands	443,734	377,471	418,367	361,125	350,238	606,729	636,000	642,130	586,096	525,769	523,271	463,264
Return on total capital		10.37%	8.95%	8.33%	8.83%	11.84%	41.96%	40.42%	11.06%	11.02%

December 31, 2023 calculation

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

The return on total capital for Sotera Health Co has shown fluctuations over the past eight quarters, ranging from 8.10% to 10.87%. The company's performance peaked in Q1 2022 with a return of 10.87% but experienced a slight decline in subsequent quarters. Despite variations in performance, the return on total capital has generally been above 8% throughout the analyzed period. Investors may monitor this metric closely to assess the company's efficiency in generating returns from its total capital investments.

Peer comparison

Dec 31, 2023

Company name

Symbol

Return on total capital

Sotera Health Co

SHC

10.37%

DaVita HealthCare Partners Inc