Amkor Technology Inc (AMKR)
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 | 500,517 | 559,942 | 710,007 | 772,119 | 914,276 | 943,586 | 829,952 | 834,352 | 763,962 | 663,737 | 577,076 | 506,858 | 448,489 | 412,814 | 368,705 | 299,464 | 231,458 | 188,218 | 198,777 | 248,026 |
| Long-term debt | US$ in thousands | 1,071,830 | 947,227 | 975,535 | 1,060,000 | 1,088,520 | 1,001,540 | 981,220 | 1,087,410 | 984,988 | 884,236 | 916,407 | 952,366 | 1,005,340 | 1,182,570 | 1,396,390 | 1,371,500 | 1,305,760 | 1,195,000 | 1,109,940 | 1,215,260 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,963,740 | 1,861,640 | 1,805,310 | 1,807,010 |
| Return on total capital | 9.94% | 11.68% | 15.08% | 16.23% | 19.22% | 21.02% | 19.87% | 19.94% | 19.45% | 18.36% | 16.63% | 14.97% | 13.46% | 12.22% | 10.58% | 8.80% | 7.08% | 6.16% | 6.82% | 8.21% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $500,517K ÷ ($1,071,830K + $3,962,310K)
= 9.94%
AMKOR Technology Inc.'s return on total capital has shown a declining trend over the past eight quarters. The return on total capital decreased from 18.10% in Q4 2022 to 9.00% in Q4 2023. This indicates that the company's ability to generate returns from its total capital has weakened over time. The most recent return on total capital of 9.00% in Q4 2023 is significantly lower than the peak of 19.81% in Q3 2022. The downward trend in return on total capital may suggest inefficiencies in capital utilization or declining profitability relative to the capital employed. Further analysis would be required to identify the root causes of the decreasing return on total capital and to develop strategies to improve the company's overall financial performance.
Peer comparison
Dec 31, 2023