Sotera Health Co (SHC)
Return on total capital
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 266,744 | 198,339 | 166,929 | 181,154 | 160,804 | -202,572 | -185,503 | -187,740 | -165,501 | 256,149 | 250,065 | 271,758 | 251,093 | 232,741 | 228,128 | 213,733 | 221,272 | 211,812 | 198,253 | 184,356 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 404,911 | 470,163 | 422,764 | 429,392 | 443,734 | 377,471 | 418,367 | 361,125 | 350,238 | 606,729 | 636,000 | 642,130 | 586,096 | 525,769 | 523,271 | 465,744 | 454,574 | -663,858 | -683,704 | -627,507 |
| Return on total capital | 65.88% | 42.19% | 39.49% | 42.19% | 36.24% | -53.67% | -44.34% | -51.99% | -47.25% | 42.22% | 39.32% | 42.32% | 42.84% | 44.27% | 43.60% | 45.89% | 48.68% | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $266,744K ÷ ($—K + $404,911K)
= 65.88%
The return on total capital for Sotera Health Co has shown fluctuations over the past few years. It stood at 48.68% as of December 31, 2020, indicating a strong performance in utilizing its total capital to generate returns. However, the ratio declined to 39.32% by June 30, 2022, before improving to 65.88% by December 31, 2024.
It is noteworthy that there were negative returns recorded during the period from December 31, 2022, to March 31, 2023, reaching as low as -53.67% by September 30, 2023. This suggests challenges in effectively deploying capital during that time period, resulting in a significant decrease in returns compared to the invested capital.
Overall, the return on total capital trended positively from 2020 to 2024, with some fluctuations along the way. The company's ability to maintain a higher return on total capital indicates efficient capital allocation and effective use of resources in generating profits.
Peer comparison
Dec 31, 2024