Cognex Corporation (CGNX)
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 | 115,065 | 130,702 | 246,229 | 315,101 | 170,529 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,517,500 | 1,504,750 | 1,438,390 | 1,430,090 | 1,262,200 |
| Return on total capital | 7.58% | 8.69% | 17.12% | 22.03% | 13.51% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $115,065K ÷ ($—K + $1,517,500K)
= 7.58%
Based on the provided data, Cognex Corporation's return on total capital has fluctuated over the past five years. It stood at 13.51% as of December 31, 2020, showing a modest return. However, there was a notable improvement in performance by December 31, 2021, with a return of 22.03%, indicating a significant increase in profitability.
Subsequently, the return on total capital declined to 17.12% by December 31, 2022, still above the initial measurement but lower than the peak in 2021. The trend continued downward with returns of 8.69% on December 31, 2023, and 7.58% on December 31, 2024.
The overall analysis suggests that Cognex Corporation experienced a period of strong performance, followed by a decline in return on total capital. It is important for stakeholders to assess the reasons behind these fluctuations to understand the company's financial health and sustainability.
Peer comparison
Dec 31, 2024