Advanced Energy Industries Inc (AEIS)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 113,694 | 158,025 | 205,536 | 228,476 | 233,095 | 217,204 | 163,841 | 152,156 | 151,681 | 165,256 | 200,001 | 194,397 | 176,023 | 142,440 | 92,876 | 92,321 | 79,086 | 77,576 | 108,128 | 128,759 |
| Long-term debt | US$ in thousands | 895,679 | 899,848 | 343,516 | 348,389 | 353,262 | 358,132 | 363,001 | 367,868 | 372,733 | 377,597 | 296,045 | 300,297 | 304,546 | 308,794 | 313,040 | 317,285 | 321,527 | 325,769 | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 676,714 | 659,627 | 655,518 | 621,624 |
| Return on total capital | 5.57% | 7.90% | 13.99% | 15.82% | 16.42% | 16.12% | 12.73% | 11.99% | 12.20% | 13.56% | 17.07% | 16.96% | 15.73% | 13.23% | 9.01% | 9.21% | 7.92% | 7.87% | 16.50% | 20.71% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $113,694K ÷ ($895,679K + $1,144,180K)
= 5.57%
Looking at the return on total capital trend of Advanced Energy Industries Inc., we observe a fluctuating pattern over the past eight quarters. The return on total capital ranged from a low of 6.83% in Q4 2023 to a high of 16.67% in Q4 2022.
In the latest quarter, Q4 2023, the return on total capital decreased to 6.83% compared to the previous quarter's 8.54%, indicating a less efficient utilization of total capital in generating profits. However, despite this decline, the return on total capital in Q4 2023 remains positive.
Looking at a longer-term perspective, the return on total capital has generally shown a positive trend, with quarterly fluctuations. The highest return on total capital was observed in Q4 2022 at 16.67%, suggesting that the company was able to generate higher profits relative to its total capital investment during that period.
Overall, while Advanced Energy Industries Inc. experienced fluctuations in return on total capital over the past eight quarters, the company has demonstrated an ability to effectively utilize its total capital to generate profits.
Peer comparison
Dec 31, 2023