Amkor Technology Inc (AMKR)
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 | 480,722 | 486,360 | 495,286 | 486,116 | 485,189 | 551,445 | 710,001 | 772,646 | 915,495 | 945,975 | 832,958 | 837,319 | 766,574 | 665,883 | 578,975 | 508,821 | 450,850 | 415,272 | 370,833 | 301,320 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,149,540 | 4,163,620 | 4,049,660 | 3,997,130 | 3,962,310 | 3,846,690 | 3,732,150 | 3,696,480 | 3,668,750 | 3,487,350 | 3,196,300 | 3,096,120 | 2,942,280 | 2,730,010 | 2,554,250 | 2,433,920 | 2,325,700 | 2,194,620 | 2,089,400 | 2,031,520 |
| Return on total capital | 11.58% | 11.68% | 12.23% | 12.16% | 12.25% | 14.34% | 19.02% | 20.90% | 24.95% | 27.13% | 26.06% | 27.04% | 26.05% | 24.39% | 22.67% | 20.91% | 19.39% | 18.92% | 17.75% | 14.83% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $480,722K ÷ ($—K + $4,149,540K)
= 11.58%
The return on total capital for Amkor Technology Inc has shown a generally increasing trend from March 31, 2020, to September 30, 2022, with consistent improvements in each quarter. The ratio peaked at 27.13% on September 30, 2022, indicating efficient utilization of both debt and equity in generating returns.
However, starting from December 31, 2022, the return on total capital began to decrease gradually, with a more significant decline observed in the latter half of 2023 and into 2024. The ratio dropped to 11.58% by December 31, 2024, representing a notable decrease in the company's ability to generate returns on its total invested capital.
This declining trend in the return on total capital may signal potential challenges in maintaining profitability and efficiency in capital allocation for Amkor Technology Inc, emphasizing the need for management to assess and address the underlying factors contributing to the downward trajectory.
Peer comparison
Dec 31, 2024