Benchmark Electronics Inc (BHE)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 113,095 | 97,236 | 53,879 | 25,657 | 33,933 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,079,080 | 1,026,420 | 973,802 | 989,588 | 1,014,830 |
| Return on total capital | 10.48% | 9.47% | 5.53% | 2.59% | 3.34% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $113,095K ÷ ($—K + $1,079,080K)
= 10.48%
Benchmark Electronics Inc.'s return on total capital has shown an improving trend over the past five years. The return on total capital increased from 4.24% in 2019 to 8.37% in 2023, indicating the company's ability to generate profits from its total capital base. This performance suggests effective management of both debt and equity in funding the company's operations and investments. The upward trajectory of the return on total capital reflects positively on Benchmark Electronics Inc.'s operational efficiency and profitability in utilizing its total capital resources effectively to generate returns for its shareholders.
Peer comparison
Dec 31, 2023