Calix Inc (CALX)
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 | — | 25,585 | 48,610 | 73,056 | 35,869 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 780,940 | 718,982 | 679,567 | 568,428 | 280,325 |
| Return on total capital | 0.00% | 3.56% | 7.15% | 12.85% | 12.80% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $780,940K)
= 0.00%
From the data provided, Calix Inc's return on total capital has shown a decreasing trend over the years. In December 2020 and 2021, the return on total capital was relatively stable at 12.80% and 12.85% respectively. However, there was a notable decline in December 2022 to 7.15%, indicating a decrease in the efficiency of capital utilization.
The trend continued in December 2023 with a further decrease to 3.56%, suggesting potential challenges in generating returns on the total capital deployed. Finally, by December 2024, the return on total capital dropped to 0.00%, indicating that the company may be facing significant difficulties in utilizing its capital effectively to generate profits.
Overall, the declining trend in Calix Inc's return on total capital highlights potential concerns about the company's capital efficiency and ability to generate satisfactory returns for its investors. Management may need to reassess its capital allocation strategies and operational efficiency to improve the company's financial performance.
Peer comparison
Dec 31, 2024