Zimmer Biomet Holdings Inc (ZBH)
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 | 1,285,700 | 1,277,700 | 696,300 | 860,300 | 83,100 |
| Long-term debt | US$ in thousands | 5,341,600 | 4,867,900 | 5,152,200 | 5,463,700 | 7,626,500 |
| Total stockholders’ equity | US$ in thousands | 12,468,100 | 12,480,500 | 12,020,300 | 12,660,700 | 12,194,200 |
| Return on total capital | 7.22% | 7.36% | 4.05% | 4.75% | 0.42% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,285,700K ÷ ($5,341,600K + $12,468,100K)
= 7.22%
Zimmer Biomet Holdings Inc's return on total capital has shown a fluctuating trend over the specified years. In December 2020, the return was relatively low at 0.42%, indicating that the company's profitability in relation to its total capital was minimal. However, there was a substantial increase in return by December 2024, reaching 7.22%. This suggests that the company significantly improved its ability to generate profits from the total capital employed, showcasing a positive development in its financial performance over the years. The steady improvement in return on total capital from 2020 to 2024 demonstrates Zimmer Biomet's effective utilization of its capital resources to generate higher returns for its stakeholders.
Peer comparison
Dec 31, 2024