Varex Imaging Corp (VREX)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 60,100 | 83,800 | 70,200 | -41,700 | 42,300 |
| Long-term debt | US$ in thousands | 441,100 | 412,300 | 431,700 | 452,800 | 364,400 |
| Total stockholders’ equity | US$ in thousands | 567,700 | 533,400 | 483,300 | 451,700 | 444,900 |
| Return on total capital | 5.96% | 8.86% | 7.67% | -4.61% | 5.23% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $60,100K ÷ ($441,100K + $567,700K)
= 5.96%
Varex Imaging Corp's return on total capital has exhibited fluctuations over the past five years. In 2023, the return on total capital was 5.96%, showing a decrease from the previous year's figure of 8.86%. This decline indicates that the company may have experienced challenges in generating profit relative to its total capital in the most recent period.
Looking back further, the return on total capital was 7.67% in 2021, indicating a slight decrease from the 2020 figure of -4.61%, which was negative. The negative return in 2020 suggests that the company may have faced significant difficulties in effectively utilizing its total capital to generate profit during that particular year.
However, the return on total capital improved in 2019, standing at 5.23%, reflecting a recovery from the negative performance in 2020. Throughout these years, Varex Imaging Corp has shown variations in its ability to generate returns in relation to its total capital, indicating fluctuations in its profitability and capital utilization efficiency.
Peer comparison
Sep 30, 2023