Teleflex Incorporated (TFX)
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 | 517,850 | 500,406 | 616,692 | 423,749 | 419,658 |
| Long-term debt | US$ in thousands | 1,727,570 | 1,624,020 | 1,740,100 | 2,377,890 | 1,858,940 |
| Total stockholders’ equity | US$ in thousands | 4,440,990 | 4,021,970 | 3,754,750 | 3,336,460 | 2,979,320 |
| Return on total capital | 8.39% | 8.86% | 11.22% | 7.42% | 8.67% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $517,850K ÷ ($1,727,570K + $4,440,990K)
= 8.39%
Teleflex Incorporated's return on total capital has shown a degree of consistency over the last five years, with figures ranging from 7.94% to 9.97%. The return on total capital for the most recent year (2023) stands at 8.99%, indicating that the company generated approximately $0.0899 in profit for every dollar of total capital employed. This metric reflects the efficiency with which the company utilizes its total capital to generate returns for its investors. While the return on total capital has remained relatively stable over the years, it is important for Teleflex to continue monitoring and improving this ratio to ensure sustained profitability and value creation for its stakeholders.
Peer comparison
Dec 31, 2023