Entegris Inc (ENTG)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	536,336	484,634	459,749	520,316	402,887
Long-term debt	US$ in thousands	3,981,100	4,577,140	5,632,930	937,027	1,085,780
Total stockholders’ equity	US$ in thousands	3,691,500	3,408,590	10,138,700	1,713,780	1,379,490
Return on total capital		6.99%	6.07%	2.92%	19.63%	16.34%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $536,336K ÷ ($3,981,100K + $3,691,500K)
= 6.99%

Entegris Inc's return on total capital has shown variations over the years. The return on total capital increased from 16.34% as of December 31, 2020, to 19.63% by December 31, 2021, indicating improved efficiency in generating returns from the capital employed. However, there was a significant drop in the return on total capital to 2.92% by December 31, 2022, which may raise concerns about the company's capital utilization or profitability during that period.

Subsequently, there was a moderate improvement in the return on total capital to 6.07% by December 31, 2023, and a further increase to 6.99% by December 31, 2024. These increases suggest that the company may have taken steps to enhance its capital efficiency and profitability during these periods.

Overall, the trend in Entegris Inc's return on total capital indicates some fluctuations, with notable improvements seen in certain years but also a significant decrease in one year. It is essential for stakeholders to further investigate the factors behind these fluctuations and assess the company's ability to effectively utilize its capital to generate returns.