Teleflex Incorporated (TFX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 168,269 | 369,012 | 394,250 | 420,855 | 544,907 | 585,960 | 542,595 | 533,381 | 521,062 | 575,857 | 674,189 | 649,372 | 649,459 | 556,275 | 456,847 | 384,885 | 438,731 | 462,019 | 448,125 | 517,068 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,278,140 | 4,481,720 | 4,558,720 | 4,503,210 | 4,440,990 | 4,314,050 | 4,215,090 | 4,110,250 | 4,021,970 | 3,895,160 | 3,852,730 | 3,795,530 | 3,754,750 | 3,657,870 | 3,466,100 | 3,375,790 | 3,336,460 | 3,236,200 | 3,097,400 | 3,073,020 |
| Return on total capital | 3.93% | 8.23% | 8.65% | 9.35% | 12.27% | 13.58% | 12.87% | 12.98% | 12.96% | 14.78% | 17.50% | 17.11% | 17.30% | 15.21% | 13.18% | 11.40% | 13.15% | 14.28% | 14.47% | 16.83% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $168,269K ÷ ($—K + $4,278,140K)
= 3.93%
Teleflex Incorporated's return on total capital has fluctuated over the period from March 31, 2020, to December 31, 2024. The trend shows a gradual decline from 16.83% in March 2020 to 3.93% in December 2024. While there were variations in the interim periods, the overall trend indicates a decreasing trend in return on total capital.
The highest return on total capital was observed in December 2021 at 17.30%, which was followed by a slight decrease in March 2022 to 17.11%. However, after March 2022, there was a continuous decline in return on total capital until December 2024. This declining trend may raise concerns regarding the company's efficiency in generating profits relative to its overall capital base.
It is essential for Teleflex Incorporated to monitor and address the factors contributing to the diminishing return on total capital to ensure sustainable profitability and efficient capital allocation in the future.
Peer comparison
Dec 31, 2024