Benchmark Electronics Inc (BHE)

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	113,095	113,760	106,515	103,828	97,236	83,880	69,473	57,299	53,879	47,073	43,909	31,053	25,657	4,873	6,017	21,372	33,933	59,903	63,222	65,059
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,079,080	1,063,050	1,047,730	1,034,630	1,026,420	1,000,620	985,773	976,405	973,802	962,336	967,278	977,547	989,588	990,327	984,360	989,622	1,014,830	1,028,770	1,045,050	1,078,720
Return on total capital		10.48%	10.70%	10.17%	10.04%	9.47%	8.38%	7.05%	5.87%	5.53%	4.89%	4.54%	3.18%	2.59%	0.49%	0.61%	2.16%	3.34%	5.82%	6.05%	6.03%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $113,095K ÷ ($—K + $1,079,080K)
= 10.48%

To analyze Benchmark Electronics Inc.'s return on total capital, we can see a consistent improvement in this metric over the past few quarters. The return on total capital has been steadily increasing from 6.14% in Q1 2022 to 8.37% in Q4 2023. This indicates that the company has become more efficient in generating profits relative to the total capital employed in its operations.

A higher return on total capital suggests that Benchmark Electronics Inc. is effectively utilizing its capital to generate earnings. It indicates that the company is effectively managing its assets and liabilities to produce a higher return for its investors.

Overall, the trend in the return on total capital for Benchmark Electronics Inc. shows a positive trajectory, reflecting the company's improving operational efficiency and financial performance over the analyzed period.