Stericycle Inc (SRCL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 77,300 | 153,700 | 72,300 | 31,900 | -211,900 |
| Long-term debt | US$ in thousands | 1,310,000 | 1,400,000 | 1,630,000 | 1,860,000 | 2,730,000 |
| Total stockholders’ equity | US$ in thousands | 2,522,500 | 2,420,200 | 2,398,700 | 2,430,100 | 2,330,900 |
| Return on total capital | 2.02% | 4.02% | 1.79% | 0.74% | -4.19% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $77,300K ÷ ($1,310,000K + $2,522,500K)
= 2.02%
Stericycle Inc.'s return on total capital has shown a fluctuating trend over the past five years. In 2023, the return on total capital was 3.68%, a slight increase from the previous year's 3.51%. This indicates that the company generated $3.68 in profit for every $100 of total capital invested. However, compared to 2021 where the return on total capital was 1.76%, there has been a significant improvement in profitability.
It's worth noting that in 2020, Stericycle Inc. had a return on total capital of 3.69%, slightly higher than 2023. This implies that the company's profitability dipped in 2021 before recovering in the subsequent years. Additionally, in 2019, the return on total capital was 2.39%, showing a gradual increase in profitability over the years.
Overall, while there have been fluctuations in Stericycle Inc.'s return on total capital, the trend indicates a general upward trajectory, with the company improving its efficiency in generating returns from its total capital investment.
Peer comparison
Dec 31, 2023