Cirrus Logic Inc (CRUS)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	343,466	255,637	369,611	246,303	182,323
Long-term debt	US$ in thousands	—	0	0	0	0
Total stockholders’ equity	US$ in thousands	1,817,010	1,658,280	1,599,820	1,389,000	1,229,780
Return on total capital		18.90%	15.42%	23.10%	17.73%	14.83%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $343,466K ÷ ($—K + $1,817,010K)
= 18.90%

Cirrus Logic Inc's return on total capital has shown a positive trend over the past five years. The return on total capital increased from 14.83% in 2020 to 18.90% in 2024. This indicates that the company is effectively generating returns from its total invested capital. The consistent improvement in this ratio suggests that Cirrus Logic Inc is efficiently utilizing its capital to generate profits for its stakeholders. The strong performance in return on total capital in recent years reflects positively on the company's financial health and operational efficiency.