Waters Corporation (WAT)

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	817,676	873,395	821,707	645,489	708,457
Long-term debt	US$ in thousands	2,305,510	1,524,880	1,513,870	1,206,520	1,580,800
Total stockholders’ equity	US$ in thousands	1,150,340	504,488	367,554	232,144	-216,281
Return on total capital		23.66%	43.04%	43.67%	44.87%	51.92%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $817,676K ÷ ($2,305,510K + $1,150,340K)
= 23.66%

The return on total capital for Waters Corp. has shown a fluctuating trend over the past five years. In 2019, the return on total capital was at its peak at 48.36%, indicating strong performance in generating profits relative to the total capital employed in the business. However, this metric experienced a slight decrease in the following years, with the lowest return recorded in 2023 at 23.32%.

Despite the fluctuations, the return on total capital for Waters Corp. remained relatively high, signaling the company's ability to efficiently utilize its capital to generate profits. It is important for investors and stakeholders to closely monitor this metric to assess the company's effectiveness in capital allocation and overall financial performance.