Vontier Corp (VNT)
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 | 537,000 | 543,400 | 577,900 | 582,200 | 468,200 |
| Long-term debt | US$ in thousands | 2,092,000 | 2,189,000 | 2,585,700 | 2,583,800 | 1,795,300 |
| Total stockholders’ equity | US$ in thousands | 1,051,100 | 890,400 | 576,500 | 569,900 | 187,800 |
| Return on total capital | 17.09% | 17.65% | 18.28% | 18.46% | 23.61% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $537,000K ÷ ($2,092,000K + $1,051,100K)
= 17.09%
The return on total capital for Vontier Corp has shown a declining trend over the years, starting at 23.61% as of December 31, 2020, and steadily decreasing to 17.09% by December 31, 2024. This indicates that the company's ability to generate profits from its total invested capital has been gradually diminishing.
It is essential for Vontier Corp to closely monitor and evaluate the efficiency of its capital utilization to reverse this trend and potentially improve its profitability in the future. Further analysis of the company's operational performance, capital structure, and strategic decisions may be necessary to address the declining return on total capital and enhance overall financial performance.
Peer comparison
Dec 31, 2024