NCR Voyix Corporation (VYX)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 75,000 | 493,000 | 521,000 | 86,000 | 488,000 |
| Long-term debt | US$ in thousands | 2,563,000 | 5,552,000 | 5,505,000 | 3,270,000 | 3,277,000 |
| Total stockholders’ equity | US$ in thousands | 25,000 | 1,480,000 | 1,256,000 | 1,048,000 | 1,104,000 |
| Return on total capital | 2.90% | 7.01% | 7.71% | 1.99% | 11.14% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $75,000K ÷ ($2,563,000K + $25,000K)
= 2.90%
The return on total capital for NCR Voyix Corporation has exhibited fluctuations over the past five years. The ratio stood at 2.90% as of December 31, 2023, a decrease from the prior year's figure of 7.01%. This decline suggests that the company's profitability in generating returns from all its capital sources has decreased. Comparing to the performance in 2021, where the return on total capital was 7.71%, the current year's ratio represents a significant drop.
The return on total capital for NCR Voyix Corporation was notably low in 2020 at 1.99%, indicating a period of poor capital utilization efficiency. However, there was a substantial improvement in 2019, where the ratio was 11.14%, representing a strong performance in leveraging all capital sources to generate returns.
Overall, the trend in return on total capital for NCR Voyix Corporation suggests varying levels of efficiency in capital utilization and profitability over the past five years, with fluctuations that may require further analysis to understand the underlying factors driving these changes.