FormFactor Inc (FORM)
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 | 79,830 | 82,756 | 58,449 | 99,102 | 86,039 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 947,768 | 908,804 | 808,285 | 815,780 | 744,084 |
| Return on total capital | 8.42% | 9.11% | 7.23% | 12.15% | 11.56% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $79,830K ÷ ($—K + $947,768K)
= 8.42%
FormFactor Inc's return on total capital has fluctuated over the past five years. In December 2020, the return on total capital was 11.56%, which increased to 12.15% by December 2021. However, there was a significant drop in the return on total capital to 7.23% by December 2022. The return improved slightly to 9.11% by December 2023 but decreased again to 8.42% by December 2024.
The fluctuations in FormFactor Inc's return on total capital indicate varying levels of efficiency in generating returns from the total capital employed in the business over the years. It is crucial for the company to assess the factors contributing to these fluctuations and implement strategies to enhance the return on total capital in the future.
Peer comparison
Dec 31, 2024