Cohu Inc (COHU)
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 | -64,328 | 49,198 | 130,892 | 132,068 | 21,368 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 856,891 | 950,170 | 928,841 | 882,502 | 511,624 |
| Return on total capital | -7.51% | 5.18% | 14.09% | 14.97% | 4.18% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-64,328K ÷ ($—K + $856,891K)
= -7.51%
Based on the data provided, Cohu Inc's return on total capital has shown volatility over the years. In 2020, the return on total capital was 4.18%, indicating that the company generated a return of 4.18% on its total capital investments for that year.
The following year, in 2021, there was a significant improvement as the return on total capital increased to 14.97%, suggesting that Cohu Inc was able to generate higher returns on its capital investments. This positive trend continued in 2022, with a return on total capital of 14.09%.
However, in 2023, there was a decrease in the return on total capital to 5.18%, indicating a slight decline in the company's efficiency in generating returns on its total capital.
The data for 2024 shows a significant negative return on total capital of -7.51%, which could be a cause for concern as it indicates that Cohu Inc might have incurred losses or generated lower returns compared to the capital invested, potentially due to factors such as operational inefficiencies or poor financial performance.
Overall, based on this data, it is essential for Cohu Inc to closely monitor and address the fluctuations in its return on total capital to ensure sustainable and profitable growth in the future.
Peer comparison
Dec 31, 2024