Vontier Corp (VNT)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 537,000 | 534,100 | 545,200 | 551,700 | 543,400 | 553,400 | 561,000 | 576,900 | 577,900 | 582,400 | 599,600 | 584,100 | 582,200 |
| Long-term debt | US$ in thousands | 2,092,000 | 2,191,100 | 2,190,400 | 2,189,700 | 2,189,000 | 2,348,200 | 2,422,400 | 2,521,600 | 2,585,700 | 2,635,900 | 2,599,200 | 2,584,500 | 2,583,800 |
| Total stockholders’ equity | US$ in thousands | 1,051,100 | 1,034,600 | 1,016,100 | 984,900 | 890,400 | 759,500 | 696,500 | 636,300 | 576,500 | 497,300 | 499,300 | 548,200 | 569,900 |
| Return on total capital | 17.09% | 16.56% | 17.00% | 17.38% | 17.65% | 17.81% | 17.99% | 18.27% | 18.28% | 18.59% | 19.35% | 18.65% | 18.46% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $537,000K ÷ ($2,092,000K + $1,051,100K)
= 17.09%
Vontier Corp's return on total capital has shown some fluctuations over the reporting periods provided. The return on total capital ranged from a high of 19.35% on June 30, 2022, to a low of 16.56% on September 30, 2024. Generally, the return on total capital remained above 17% for most periods, indicating that the company is generating a significant return relative to its total capital employed. However, there was a slight decline in the return on total capital towards the end of the reporting period, dropping to 17.09% on December 31, 2024. This trend suggests that the company may have experienced some challenges in maintaining optimal profitability and efficiency in utilizing its total capital during this period. Overall, a return on total capital above 17% signifies that Vontier Corp is effectively utilizing its capital to generate returns for its stakeholders, although monitoring performance trends is important to ensure sustained profitability.
Peer comparison
Dec 31, 2024