Teleflex Incorporated (TFX)
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 | 151,013 | 519,094 | 521,063 | 635,733 | 438,726 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,278,140 | 4,440,990 | 4,021,970 | 3,754,750 | 3,336,460 |
| Return on total capital | 3.53% | 11.69% | 12.96% | 16.93% | 13.15% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $151,013K ÷ ($—K + $4,278,140K)
= 3.53%
Teleflex Incorporated's return on total capital has shown fluctuations over the years. Starting at 13.15% on December 31, 2020, it increased to 16.93% by December 31, 2021, indicating improved efficiency in generating returns from both debt and equity investments. However, the return declined to 12.96% by December 31, 2022, and further to 11.69% by December 31, 2023, reflecting potential challenges in effectively utilizing its capital. The most recent data point, December 31, 2024, shows a significant drop to 3.53%, which suggests a considerable decrease in the company's ability to earn returns on its total capital. This downward trend in return on total capital raises concerns about Teleflex's efficiency in generating profits relative to its capital investments and warrants further investigation into the factors influencing this performance.
Peer comparison
Dec 31, 2024