Corsair Gaming Inc (CRSR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 9,689 | -54,793 | 137,894 | 158,361 |
| Long-term debt | US$ in thousands | 186,006 | 232,170 | 242,898 | 321,393 |
| Total stockholders’ equity | US$ in thousands | 667,575 | 623,838 | 568,180 | 437,390 |
| Return on total capital | 1.14% | -6.40% | 17.00% | 20.87% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $9,689K ÷ ($186,006K + $667,575K)
= 1.14%
Corsair Gaming Inc's return on total capital has fluctuated over the past five years. In 2023, the company's return on total capital was 1.12%, signaling a relatively low profitability compared to the previous year. In 2022, the return on total capital was negative at -6.35%, indicating that the company experienced a loss in capital efficiency for that year. However, in 2021 and 2020, the return on total capital showed significant improvements at 16.90% and 20.87% respectively, suggesting a strong performance in utilizing total capital to generate profits during those years. In 2019, the return on total capital was 3.28%, indicating moderate profitability.
Overall, Corsair Gaming Inc's return on total capital has shown inconsistency, with periods of strong performance followed by periods of lower efficiency in capital utilization. It is essential for the company to analyze the factors driving these fluctuations and implement strategies to improve capital efficiency to ensure sustainable and consistent profitability in the future.
Peer comparison
Dec 31, 2023