Calix Inc (CALX)
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 | 25,585 | 50,727 | 54,803 | 52,693 | 52,610 | 54,175 | 52,161 | 62,989 | 73,938 | 84,096 | 87,855 | 63,988 | 36,846 | 13,566 | -11,035 | -12,628 | -15,401 | -22,050 | -18,523 | -16,518 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 718,982 | 750,945 | 741,770 | 717,839 | 679,567 | 647,747 | 617,129 | 591,805 | 568,428 | 535,626 | 345,638 | 314,715 | 280,325 | 247,531 | 159,168 | 150,915 | 154,028 | 146,150 | 147,206 | 145,841 |
| Return on total capital | 3.56% | 6.76% | 7.39% | 7.34% | 7.74% | 8.36% | 8.45% | 10.64% | 13.01% | 15.70% | 25.42% | 20.33% | 13.14% | 5.48% | -6.93% | -8.37% | -10.00% | -15.09% | -12.58% | -11.33% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $25,585K ÷ ($—K + $718,982K)
= 3.56%
Return on total capital is a key financial ratio that indicates how effectively a company is generating profits from its invested capital. Looking at the data for Calix Inc over the past eight quarters, there has been a gradual decline in the return on total capital.
The ratio peaked at 10.40% in Q1 2022, but has since been on a downward trend, reaching 3.56% in Q4 2023. This declining trend may raise concerns about the company's ability to efficiently utilize its capital to generate profits.
It is essential for Calix Inc to closely monitor and address the factors contributing to the decreasing return on total capital to ensure sustainable and profitable operations in the future. Further analysis of the company's financial performance and operational efficiency is recommended to identify areas for improvement and strategic decision-making.
Peer comparison
Dec 31, 2023