Dentsply Sirona Inc (XRAY)
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 | -867,000 | -111,000 | 633,772 | 626,000 | 2,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,942,000 | 3,293,000 | 3,812,000 | 5,043,000 | 4,970,000 |
| Return on total capital | -44.64% | -3.37% | 16.63% | 12.41% | 0.04% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-867,000K ÷ ($—K + $1,942,000K)
= -44.64%
Dentsply Sirona Inc's return on total capital has shown significant variability over the past five years. Starting at a low of 0.04% on December 31, 2020, the return on total capital surged to 16.63% by December 31, 2022, indicating a substantial improvement in the company's capital efficiency. However, the return dipped to -3.37% by December 31, 2023, reflecting a potential decline in profitability and efficiency.
Notably, by the end of December 31, 2024, Dentsply Sirona Inc experienced a substantial decrease in return on total capital, plummeting to -44.64%. Such a sharp decline may raise concerns about the company's ability to generate returns on the total capital employed in its operations.
In conclusion, the wide fluctuations in Dentsply Sirona Inc's return on total capital over the specified period suggest a varied performance in capital efficiency and profitability, impacting its overall financial health. Further analysis into the reasons behind these fluctuations will be vital for stakeholders to assess the company's operational and strategic effectiveness.
Peer comparison
Dec 31, 2024