Corsair Gaming Inc (CRSR)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,689 | 11,205 | 975 | -51,271 | -54,793 | -43,296 | -21,553 | 68,120 | 137,894 | 171,650 | 210,639 | |||
| Long-term debt | US$ in thousands | 186,006 | 210,573 | 217,357 | 220,390 | 232,170 | 239,052 | 240,377 | 241,709 | 242,898 | 244,087 | 270,013 | 294,254 | 321,393 | 370,090 |
| Total stockholders’ equity | US$ in thousands | 667,575 | 649,926 | 648,186 | 633,271 | 623,838 | 516,200 | 524,712 | 580,274 | 568,180 | 537,015 | 529,686 | 487,707 | 437,390 | 388,552 |
| Return on total capital | 1.14% | 1.30% | 0.11% | -6.01% | -6.40% | -5.73% | -2.82% | 8.29% | 17.00% | 21.98% | 26.34% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,689K ÷ ($186,006K + $667,575K)
= 1.14%
Return on total capital is a key financial metric that indicates the efficiency and profitability of a company in generating returns from all sources of capital employed.
From the provided data:
- Corsair Gaming Inc's return on total capital showed a mixed performance over the past eight quarters.
- In Q4 2023, the return on total capital was 1.12%, which improved from the previous quarter (Q3 2023) where it was 1.28%.
- However, the company's performance was weaker in Q2 2023 and Q1 2023, with return on total capital at 0.11% and -5.95% respectively.
- Going back further, Corsair had negative returns on total capital in Q4 2022 (-6.35%) and Q3 2022 (-5.70%), reflecting challenges in profitability during those periods.
- The company's best performance in terms of return on total capital was seen in Q1 2022, with a notable return of 8.24%.
Overall, Corsair Gaming Inc's return on total capital has been fluctuating with both positive and negative trends observed in recent quarters. It is essential for the company to sustain positive returns and work towards improving efficiency in capital utilization to enhance overall profitability and shareholder value.
Peer comparison
Dec 31, 2023