Benchmark Electronics Inc (BHE)
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 | 110,817 | 113,095 | 97,236 | 53,879 | 25,657 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,113,310 | 1,079,080 | 1,026,420 | 973,802 | 989,588 |
| Return on total capital | 9.95% | 10.48% | 9.47% | 5.53% | 2.59% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $110,817K ÷ ($—K + $1,113,310K)
= 9.95%
Benchmark Electronics Inc's return on total capital has shown a positive trend over the past five years. The return on total capital increased from 2.59% in December 31, 2020 to 9.95% in December 31, 2024. This indicates an improvement in the company's ability to generate profits relative to the total capital employed. The increasing trend suggests that the company has been using its capital more efficiently over the years, thereby creating additional value for its shareholders. The consistent growth in return on total capital reflects positively on the company's financial performance and management's effectiveness in utilizing the resources at its disposal.
Peer comparison
Dec 31, 2024