Veralto Corporation (VLTO)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,194,000 | 1,172,000 | 1,137,000 |
| Long-term debt | US$ in thousands | 2,599,000 | 2,639,000 | 2,615,000 |
| Total stockholders’ equity | US$ in thousands | 2,038,000 | 1,954,000 | 1,666,000 |
| Return on total capital | 25.75% | 25.52% | 26.56% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,194,000K ÷ ($2,599,000K + $2,038,000K)
= 25.75%
To analyze Veralto Corporation's return on total capital based on the provided data, we observe a consistent performance over the three periods indicated. The return on total capital was 26.56% as of June 30, 2024, slightly decreasing to 25.52% on September 30, 2024, before registering a slight uptick to 25.75% by December 31, 2024.
This trend suggests that Veralto Corporation has been able to generate a favorable return relative to the total capital employed in its operations. Maintaining return on total capital above the company's cost of capital is crucial for sustainable profitability and value creation for its stakeholders.
Further analysis into the underlying factors influencing the return on total capital, such as operational efficiency, capital structure, and asset utilization, would provide deeper insights into Veralto Corporation's financial performance and strategy.
Peer comparison
Dec 31, 2024