Cirrus Logic Inc (CRUS)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 394,513 | 353,659 | 255,637 | 369,611 | 246,303 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,949,450 | 1,817,010 | 1,658,280 | 1,599,820 | 1,389,000 |
| Return on total capital | 20.24% | 19.46% | 15.42% | 23.10% | 17.73% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $394,513K ÷ ($—K + $1,949,450K)
= 20.24%
Cirrus Logic Inc's return on total capital has shown fluctuations over the past five years. As of March 31, 2021, the company had a return on total capital of 17.73%, which increased to 23.10% by March 31, 2022, signaling improved capital efficiency. However, there was a decline in the return on total capital to 15.42% by March 31, 2023, which may indicate challenges in generating profits relative to the invested capital.
Subsequently, Cirrus Logic Inc managed to improve its return on total capital to 19.46% by March 31, 2024, indicating enhanced capital utilization and potentially better profitability. The latest available data as of March 31, 2025, shows a return on total capital of 20.24%, suggesting a continued focus on efficient capital allocation and sustained profitability.
Overall, while there have been fluctuations in Cirrus Logic Inc's return on total capital over the years, the recent trend demonstrates a general improvement in capital efficiency and profitability, which are positive indicators for the company's financial performance.
Peer comparison
Mar 31, 2025