Stericycle Inc (SRCL)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 77,300 | 99,300 | 125,700 | 187,800 | 153,700 | 102,800 | 1,600 | 19,100 | 72,300 | 157,300 | 152,100 | 121,400 | 31,900 | -259,800 | -238,500 | -238,100 | -211,900 | -359,300 | -256,500 | -219,400 |
| Long-term debt | US$ in thousands | 1,310,000 | 1,200,000 | 1,200,000 | 1,400,000 | 1,400,000 | 1,540,000 | 1,560,000 | 1,650,000 | 1,630,000 | 1,670,000 | 1,750,000 | 1,770,000 | 1,860,000 | 2,030,000 | 2,160,000 | 2,630,000 | 2,730,000 | 2,770,000 | 2,850,000 | 2,810,000 |
| Total stockholders’ equity | US$ in thousands | 2,522,500 | 2,475,600 | 2,482,200 | 2,445,400 | 2,420,200 | 2,322,400 | 2,349,900 | 2,377,500 | 2,398,700 | 2,418,500 | 2,489,800 | 2,445,200 | 2,430,100 | 2,333,600 | 2,291,600 | 2,276,200 | 2,330,900 | 2,473,700 | 2,558,000 | 2,566,600 |
| Return on total capital | 2.02% | 2.70% | 3.41% | 4.88% | 4.02% | 2.66% | 0.04% | 0.47% | 1.79% | 3.85% | 3.59% | 2.88% | 0.74% | -5.95% | -5.36% | -4.85% | -4.19% | -6.85% | -4.74% | -4.08% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $77,300K ÷ ($1,310,000K + $2,522,500K)
= 2.02%
Return on total capital is a key financial metric that indicates the profitability and efficiency of a company in generating returns from its total invested capital, both equity and debt.
Analyzing Stericycle Inc.'s return on total capital over the past eight quarters reveals fluctuations in the company's ability to generate profits relative to its total capital employed.
In Q4 2023, the return on total capital was 3.68%, showing a slight decline from the previous quarter's 3.88%. This indicates that the company's profitability slightly decreased in this period.
The trend across the quarters shows some variation, with the highest return recorded in Q2 2023 at 4.47%, and the lowest in Q2 2022 at -0.00%. It is noteworthy that in Q2 2022, the return on total capital was negative, suggesting that the company's capital was not effectively utilized to generate profits during that period.
Overall, Stericycle Inc.'s return on total capital has shown some volatility, with fluctuations in profitability levels. Investors and stakeholders should closely monitor this metric to assess the company's operational efficiency and financial performance in utilizing its capital resources effectively.
Peer comparison
Dec 31, 2023