Varex Imaging Corp (VREX)
Return on total capital
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 42,300 | 31,800 | 35,300 |
| Long-term debt | US$ in thousands | 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 | 364,400 | 379,400 | 316,700 |
| Total stockholders’ equity | US$ in thousands | 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 | 444,900 | 434,400 | 433,300 |
| Return on total capital | 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% | 5.23% | 3.91% | 4.71% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $53,900K ÷ ($441,400K + $568,900K)
= 5.34%
The Return on Total Capital for Varex Imaging Corp has fluctuated over the periods indicated. From Dec 31, 2019, to Dec 31, 2023, the company's return on total capital ranged from a negative figure of -4.61% to a high of 9.77%. The trend shows variability in the company's ability to generate profits relative to its total capital employed. Notably, there was a significant improvement in return on total capital from Jun 30, 2022, to Dec 31, 2022, where it surpassed 9%, indicating a positive performance during that period. However, there was a decline in return on total capital in the most recent period, ending Dec 31, 2023, to 5.34%. This suggests that the company may have experienced challenges or changes impacting its profitability. It is essential for stakeholders to monitor these fluctuations in return on total capital to assess the company's financial performance and efficiency in utilizing its total capital.
Peer comparison
Dec 31, 2023