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.