Cirrus Logic Inc (CRUS)

Return on total capital

		Mar 31, 2024	Dec 31, 2023	Sep 23, 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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	343,466	228,248	202,080	212,548	249,031	419,738	422,532	401,511	366,338	283,177	268,653	237,610	237,182	222,459	165,488	188,011	173,480	170,606	142,168	111,070
Long-term debt	US$ in thousands	—	—	—	—	0	—	—	—	0	—	—	—	0	—	—	—	0	—	—	—
Total stockholders’ equity	US$ in thousands	1,817,010	1,800,760	1,708,360	1,656,790	1,658,280	1,716,320	1,654,610	1,599,190	1,599,820	1,562,750	1,468,090	1,406,730	1,389,000	1,400,360	1,316,830	1,272,290	1,229,780	1,259,880	1,178,620	1,117,250
Return on total capital		18.90%	12.68%	11.83%	12.83%	15.02%	24.46%	25.54%	25.11%	22.90%	18.12%	18.30%	16.89%	17.08%	15.89%	12.57%	14.78%	14.11%	13.54%	12.06%	9.94%

March 31, 2024 calculation

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

Cirrus Logic Inc's return on total capital has exhibited fluctuations over the past several quarters. The company's return on total capital ranged from a low of 9.94% in the fourth quarter of 2019 to a high of 25.54% in the third quarter of 2022. The return on total capital in the most recent quarter, ending March 31, 2024, stood at 18.90%.

The variability in the return on total capital indicates fluctuating efficiency in generating profits from its capital investments. It is essential for investors and stakeholders to closely monitor this ratio, as a sustained decline in return on total capital may signal inefficiencies in the company's capital allocation and operational performance. Further analysis of the underlying factors contributing to these fluctuations, such as changes in profitability, asset utilization, or capital structure, would provide valuable insights into Cirrus Logic Inc's financial health and performance.