NCR Voyix Corporation (VYX)
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 | -65,000 | -29,000 | 173,000 | -62,000 | 164,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,209,000 | 301,000 | 1,755,000 | 1,530,000 | 1,321,000 |
| Return on total capital | -5.38% | -9.63% | 9.86% | -4.05% | 12.41% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-65,000K ÷ ($—K + $1,209,000K)
= -5.38%
From 2020 to 2024, NCR Voyix Corporation's return on total capital experienced fluctuations. In 2020, the return on total capital was at 12.41%, indicating that the company generated a positive return on the capital invested. However, in 2021, the return on total capital decreased significantly to -4.05%, reflecting that the company did not efficiently utilize its capital to generate returns.
In 2022, there was a recovery in the return on total capital, increasing to 9.86%. This suggests that the company improved its capital efficiency compared to the previous year. Nonetheless, in 2023, the return on total capital declined again to -9.63%, indicating a deterioration in the company's ability to generate returns relative to the capital invested.
By the end of 2024, the return on total capital remained negative at -5.38%, signaling ongoing challenges in effectively utilizing the capital to generate returns. Overall, the trend in the return on total capital for NCR Voyix Corporation indicates inconsistency and potential inefficiencies in capital allocation and operational performance during the period analyzed.