STAAR Surgical Company (STAA)
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 | -12,611 | 28,097 | 43,802 | 33,339 | 6,769 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 397,335 | 385,954 | 332,442 | 258,558 | 197,222 |
| Return on total capital | -3.17% | 7.28% | 13.18% | 12.89% | 3.43% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-12,611K ÷ ($—K + $397,335K)
= -3.17%
STAAR Surgical Company's return on total capital has shown fluctuating trends over the past five years. The company experienced a significant increase in its return on total capital from 3.43% as of December 31, 2020, to 13.18% as of December 31, 2022. This indicates a positive performance in utilizing its total capital to generate profits efficiently during this period.
However, in the following year, the return on total capital declined to 7.28% as of December 31, 2023, suggesting a potential decrease in the company's profitability or capital efficiency compared to the previous year. Notably, by December 31, 2024, STAAR Surgical Company's return on total capital turned negative at -3.17%, signaling a concerning trend where the company may be experiencing challenges in generating returns on its total capital investment.
Overall, while STAAR Surgical Company experienced periods of both growth and decline in its return on total capital, the negative return in the most recent year raises red flags regarding its capital allocation strategies and profit generation capabilities. Further analysis and investigation into the factors influencing these fluctuations would be necessary to understand the company's financial performance comprehensively.
Peer comparison
Dec 31, 2024