Vontier Corp (VNT)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 543,400 | 577,900 | 582,200 | 468,200 |
| Long-term debt | US$ in thousands | 2,189,000 | 2,585,700 | 2,583,800 | 1,795,300 |
| Total stockholders’ equity | US$ in thousands | 890,400 | 576,500 | 569,900 | 187,800 |
| Return on total capital | 17.65% | 18.28% | 18.46% | 23.61% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $543,400K ÷ ($2,189,000K + $890,400K)
= 17.65%
The return on total capital for Vontier Corporation has shown a decreasing trend over the past five years, from 30.40% in 2019 to 17.06% in 2023. This indicates a decline in the company's ability to generate returns on the total capital employed in its operations. The reduction in return on total capital may suggest challenges in efficiently utilizing the resources and capital, impacting the overall profitability and investment performance of the company. Further analysis of the underlying factors driving this downward trend is recommended to identify areas for improvement and enhance the company's financial performance.
Peer comparison
Dec 31, 2023