Calix Inc (CALX)
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 | 25,585 | 52,610 | 73,938 | 36,846 | -15,401 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 718,982 | 679,567 | 568,428 | 280,325 | 154,028 |
| Return on total capital | 3.56% | 7.74% | 13.01% | 13.14% | -10.00% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $25,585K ÷ ($—K + $718,982K)
= 3.56%
Calix Inc's return on total capital has exhibited a declining trend over the last five years. The company's return on total capital stood at 3.56% as of December 31, 2023, which represents a significant decrease from the previous year's figure of 7.66%. This downward trend is evident when compared to the return on total capital figures of 12.76% in 2021 and 15.23% in 2020, indicating a consistent decrease in the company's efficiency in generating returns from its total capital.
It is noteworthy that the company reported a negative return on total capital of -7.02% in 2019, signifying a period of financial underperformance. This negative figure suggests that Calix Inc was not effectively utilizing its capital resources to generate positive returns for its stakeholders.
Overall, the decreasing trend in Calix Inc's return on total capital reflects a potential concern regarding the company's operational efficiency and profitability. Further analysis of the factors influencing this trend would be necessary to address the underlying issues and make informed decisions regarding the company's future financial performance.
Peer comparison
Dec 31, 2023