Advanced Energy Industries Inc (AEIS)
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 | 50,845 | 29,016 | 74,352 | 93,791 | 133,608 | 175,506 | 219,942 | 240,661 | 245,227 | 225,605 | 176,281 | 165,798 | 166,207 | 189,584 | 221,030 | 220,109 | 206,191 | 175,302 | 126,149 | 96,648 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,203,170 | 1,164,390 | 1,165,080 | 1,142,880 | 1,144,180 | 1,100,870 | 1,125,280 | 1,095,910 | 1,066,270 | 989,287 | 924,228 | 900,688 | 870,851 | 841,120 | 875,941 | 845,641 | 814,739 | 768,152 | 717,813 | 685,397 |
| Return on total capital | 4.23% | 2.49% | 6.38% | 8.21% | 11.68% | 15.94% | 19.55% | 21.96% | 23.00% | 22.80% | 19.07% | 18.41% | 19.09% | 22.54% | 25.23% | 26.03% | 25.31% | 22.82% | 17.57% | 14.10% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $50,845K ÷ ($—K + $1,203,170K)
= 4.23%
Advanced Energy Industries Inc's return on total capital has shown a fluctuating trend over the reported periods. The ratio steadily increased from 14.10% as of March 31, 2020, reaching a peak of 26.03% by March 31, 2021, indicating the company was effectively generating profits relative to the total capital employed. However, the trend started to decline thereafter, with slight fluctuations in the subsequent quarters. As of December 31, 2024, the return on total capital stands at 4.23%, reflecting a significant decrease from the peak levels seen in the previous years. This downward trend may suggest challenges in maintaining profitability relative to the capital invested, raising potential concerns about the company's operational efficiency and overall performance. Additional analysis and context are necessary to understand the underlying factors driving these fluctuations in return on total capital.
Peer comparison
Dec 31, 2024