STAAR Surgical Company (STAA)
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 | 28,097 | 18,656 | 26,066 | 34,489 | 43,802 | 50,221 | 44,353 | 37,982 | 33,339 | 30,033 | 27,078 | 15,374 | 6,769 | 5,034 | 3,486 | 9,152 | 11,852 | 10,697 | 8,946 | 7,361 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 385,954 | 378,595 | 357,617 | 338,924 | 336,112 | 323,142 | 302,317 | 276,317 | 261,568 | 249,108 | 234,622 | 214,176 | 197,222 | 186,392 | 174,674 | 164,967 | 159,884 | 149,340 | 144,335 | 137,338 |
| Return on total capital | 7.28% | 4.93% | 7.29% | 10.18% | 13.03% | 15.54% | 14.67% | 13.75% | 12.75% | 12.06% | 11.54% | 7.18% | 3.43% | 2.70% | 2.00% | 5.55% | 7.41% | 7.16% | 6.20% | 5.36% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $28,097K ÷ ($—K + $385,954K)
= 7.28%
STAAR Surgical Company's return on total capital has shown fluctuations over the past few quarters. The return on total capital ranged from a low of 2.00% in June 2020 to a high of 15.54% in September 2022. The trend indicates that the company's ability to generate profits relative to its total capital employed has varied over time.
The return on total capital stood at 7.28% as of December 31, 2023, which reflects a moderate return compared to historical data. This may suggest that the company needs to focus on efficiently utilizing its capital to increase profitability.
Overall, a consistent and steady increase in return on total capital would indicate that STAAR Surgical Company is effectively utilizing its total capital to generate returns for its investors. Monitoring this ratio over time can provide valuable insight into the company's financial performance and efficiency in deploying capital resources.
Peer comparison
Dec 31, 2023