Cohu Inc (COHU)
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 | 49,198 | 130,892 | 198,757 | 624 | -52,226 |
| Long-term debt | US$ in thousands | 34,303 | 72,664 | 103,393 | 311,551 | 346,518 |
| Total stockholders’ equity | US$ in thousands | 950,170 | 928,841 | 882,502 | 512,288 | 483,072 |
| Return on total capital | 5.00% | 13.07% | 20.16% | 0.08% | -6.30% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $49,198K ÷ ($34,303K + $950,170K)
= 5.00%
The return on total capital for Cohu Inc has varied significantly over the past five years. In 2023, the return on total capital was 5.00%, lower than the previous year's 13.07% and significantly lower than the peak of 20.16% in 2021. The company experienced a marginal return in 2020 at 0.08% and a negative return of -6.30% in 2019.
The fluctuation in the return on total capital indicates potential shifts in the company's profitability and efficiency in utilizing its capital resources. A decreasing trend in the return on total capital could be a cause for concern, as it may suggest declining profitability or inefficiencies in utilizing the company's total capital. It would be important for Cohu Inc to analyze the drivers behind these fluctuations to identify areas for improvement and strategic decision-making to enhance its return on total capital in the future.
Peer comparison
Dec 31, 2023