Zimmer Biomet Holdings Inc (ZBH)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,285,700 | 1,250,900 | 1,238,000 | 1,216,300 | 1,277,700 | 895,200 | 873,900 | 825,200 | 696,300 | 858,400 | 856,100 | 800,000 | 860,300 | 1,138,100 | 1,194,300 | 797,800 | 83,100 | 8,300 | -45,100 | 331,300 |
| Long-term debt | US$ in thousands | 5,341,600 | 4,737,700 | 3,956,700 | 4,826,200 | 4,867,900 | 5,127,400 | 5,189,400 | 5,204,800 | 5,152,200 | 5,055,200 | 5,172,000 | 5,286,300 | 5,463,700 | 6,458,100 | 6,802,500 | 7,538,700 | 7,626,500 | 7,840,200 | 7,759,300 | 7,724,200 |
| Total stockholders’ equity | US$ in thousands | 12,468,100 | 12,374,700 | 12,741,100 | 12,598,000 | 12,480,500 | 12,510,800 | 12,371,500 | 12,150,700 | 12,020,300 | 12,244,700 | 12,118,400 | 12,015,500 | 12,660,700 | 12,708,600 | 12,577,900 | 12,445,000 | 12,194,200 | 11,872,200 | 11,641,400 | 11,878,600 |
| Return on total capital | 7.22% | 7.31% | 7.41% | 6.98% | 7.36% | 5.08% | 4.98% | 4.75% | 4.05% | 4.96% | 4.95% | 4.62% | 4.75% | 5.94% | 6.16% | 3.99% | 0.42% | 0.04% | -0.23% | 1.69% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 some fluctuations over the reporting periods provided. From March 31, 2020, to December 31, 2024, the return on total capital has ranged from a low of -0.23% to a high of 7.41%.
The company's return on total capital trended upwards from negative territory in June 2020 to reach a peak of 7.41% in June 2024. Although there were variations in the interim periods, the general trend showcases an improvement in the utilization of the company's total capital to generate returns for shareholders.
The return on total capital exceeding 5% consistently from the second quarter of 2023 till the end of the data (December 31, 2024) indicates that Zimmer Biomet Holdings Inc has been effectively generating profits relative to its invested total capital. This sustained performance suggests a positive utilization of resources and may reflect well on the company's operational efficiency and financial management.
Overall, the increasing trend in return on total capital for Zimmer Biomet Holdings Inc signals potential operational effectiveness and value creation for its stakeholders.
Peer comparison
Dec 31, 2024