Amkor Technology Inc (AMKR)
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 | 495,961 | 470,287 | 915,495 | 766,574 | 450,850 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,149,540 | 3,962,310 | 3,668,750 | 2,942,280 | 2,325,700 |
| Return on total capital | 11.95% | 11.87% | 24.95% | 26.05% | 19.39% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $495,961K ÷ ($—K + $4,149,540K)
= 11.95%
Based on the provided data, the return on total capital for Amkor Technology Inc has shown fluctuation over the years. The return on total capital increased from 19.39% in December 2020 to 26.05% in December 2021, indicating improved efficiency in generating profits from the total capital employed.
However, there was a slight decrease in the return on total capital to 24.95% in December 2022. Subsequently, there was a significant drop in performance as the return on total capital declined to 11.87% in December 2023, followed by a minor increase to 11.95% in December 2024.
The decreasing trend in the return on total capital from 2022 to 2024 may suggest challenges or inefficiencies in utilizing the capital effectively to generate returns for the company. It is essential for Amkor Technology Inc to analyze the reasons behind these fluctuations and take necessary steps to improve capital utilization efficiency in order to enhance overall financial performance and profitability.
Peer comparison
Dec 31, 2024