Corsair Gaming Inc (CRSR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -48,451 | -42,620 | -21,821 | -463 | 9,689 | 11,205 | 2,637 | -48,976 | -52,997 | -43,159 | -23,078 | 65,962 | 136,235 | 171,650 | 210,639 | 212,347 | 158,332 | 115,257 | 77,575 | 39,303 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 604,303 | 598,484 | 642,729 | 663,539 | 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 | 240,506 | 215,188 |
| Return on total capital | -8.02% | -7.12% | -3.40% | -0.07% | 1.45% | 1.72% | 0.41% | -7.73% | -8.50% | -8.36% | -4.40% | 11.37% | 23.98% | 31.96% | 39.77% | 43.54% | 36.20% | 29.66% | 32.25% | 18.26% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-48,451K ÷ ($—K + $604,303K)
= -8.02%
Corsair Gaming Inc's return on total capital has shown fluctuations over the past few years. The return on total capital steadily increased from March 31, 2020, to March 31, 2021, reaching its peak of 43.54%. This indicates the company was efficiently utilizing its total capital to generate profits during this period. However, the return on total capital started to decline from June 30, 2021, and continued to decrease through December 31, 2024, ending at -8.02%.
The decline in return on total capital suggests that Corsair Gaming Inc's ability to generate profits from its total capital has weakened over the latter part of the period under review. This downward trend could be a result of various factors such as increased operational costs, lower revenue generation, or inefficiencies in capital utilization.
It is important for Corsair Gaming Inc to assess the reasons behind this declining trend and take necessary measures to improve its return on total capital in order to enhance its overall financial performance and value creation for its stakeholders.
Peer comparison
Dec 31, 2024