Axcelis Technologies Inc (ACLS)
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 | 212,446 | 241,082 | 269,755 | 280,653 | 275,471 | 254,016 | 235,538 | 225,975 | 223,541 | 202,799 | 185,991 | 155,843 | 127,270 | 96,513 | 74,001 | 66,385 | 59,600 | 57,791 | 45,796 | 32,081 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,012,790 | 975,594 | 934,948 | 901,743 | 864,882 | 800,971 | 744,037 | 701,821 | 667,256 | 614,890 | 586,927 | 559,273 | 538,959 | 511,679 | 494,102 | 487,660 | 481,602 | 460,663 | 445,024 | 427,172 |
| Return on total capital | 20.98% | 24.71% | 28.85% | 31.12% | 31.85% | 31.71% | 31.66% | 32.20% | 33.50% | 32.98% | 31.69% | 27.87% | 23.61% | 18.86% | 14.98% | 13.61% | 12.38% | 12.55% | 10.29% | 7.51% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $212,446K ÷ ($—K + $1,012,790K)
= 20.98%
Axcelis Technologies Inc's return on total capital has shown a generally increasing trend over the data period from March 31, 2020, to December 31, 2024. The return on total capital started at 7.51% in March 2020 and reached its peak at 33.50% in December 2022. However, after December 2022, the return on total capital began to decline, dropping to 20.98% by December 31, 2024.
The increasing trend in return on total capital from 2020 to 2022 indicates that Axcelis was able to generate more profits relative to the total capital employed in the business during that period. The peak in December 2022 suggests that the company was particularly efficient at utilizing its total capital to generate returns at that point in time.
The subsequent decline in the return on total capital from December 2022 to December 2024 may indicate potential challenges or changes in the company's operations or the economic environment that affected its ability to generate returns on the capital invested. It would be important for stakeholders to further investigate the reasons behind this decline and assess the company's strategies to sustain or improve its return on total capital in the future.
Peer comparison
Dec 31, 2024