Varex Imaging Corp (VREX)
Return on total capital
| 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 36,800 | 34,000 | 49,000 | 53,900 | 60,100 | 75,400 | 73,800 | 83,600 | 83,800 | 85,900 | 88,900 | 77,700 | 70,200 | 28,500 | -30,200 | -40,300 | -41,700 | -10,000 | 27,400 | 37,200 |
| Long-term debt | US$ in thousands | 397,100 | 396,900 | 441,400 | 441,400 | 441,100 | 441,100 | 441,000 | 440,800 | 412,300 | 410,100 | 408,400 | 433,700 | 431,700 | 429,800 | 458,000 | 457,500 | 452,800 | 389,500 | 352,800 | 350,900 |
| Total stockholders’ equity | US$ in thousands | 535,100 | 581,200 | 576,100 | 568,900 | 567,700 | 531,500 | 519,600 | 511,700 | 533,400 | 514,800 | 501,100 | 492,800 | 483,300 | 471,500 | 454,700 | 450,200 | 451,700 | 467,100 | 451,100 | 447,900 |
| Return on total capital | 3.95% | 3.48% | 4.82% | 5.34% | 5.96% | 7.75% | 7.68% | 8.78% | 8.86% | 9.29% | 9.77% | 8.39% | 7.67% | 3.16% | -3.31% | -4.44% | -4.61% | -1.17% | 3.41% | 4.66% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $36,800K ÷ ($397,100K + $535,100K)
= 3.95%
Varex Imaging Corp's return on total capital has varied over the past 2 years. The trend shows some fluctuations, with the most recent figure at 3.95% as of September 30, 2024, which is slightly lower compared to the previous quarter but higher than the levels seen earlier in the year. The return on total capital has ranged from negative figures in the first quarter of 2021 and 2020 to a peak of 9.77% in the second quarter of 2022. Overall, there has been a general upward trend in return on total capital since the end of 2020, indicating improvement in the company's ability to generate returns from its capital investments. However, the recent decrease from the peak suggests that there might be some challenges or changes impacting the company's capital efficiency. It would be important to further investigate the factors contributing to these fluctuations to assess the sustainability of the company's return on total capital in the future.
Peer comparison
Sep 30, 2024