FormFactor Inc (FORM)

Return on total capital

		Dec 31, 2023	Sep 30, 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	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	82,756	-13,853	-10,783	24,026	58,449	106,143	123,798	110,605	99,102	88,375	87,528	90,026	86,039	89,234	76,934	63,892	52,978	40,472	40,045	41,972
Long-term debt	US$ in thousands	13,314	13,586	13,765	14,034	14,389	14,653	14,915	15,175	15,434	17,742	20,123	22,390	24,978	26,874	28,725	13,642	15,639	0	12,500	23,740
Total stockholders’ equity	US$ in thousands	908,804	840,688	834,263	824,372	808,285	808,302	829,985	846,673	815,780	786,390	769,547	766,533	744,084	714,142	690,722	666,417	640,997	614,546	604,102	592,988
Return on total capital		8.97%	-1.62%	-1.27%	2.87%	7.10%	12.90%	14.65%	12.83%	11.92%	10.99%	11.08%	11.41%	11.19%	12.04%	10.69%	9.40%	8.07%	6.59%	6.49%	6.81%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $82,756K ÷ ($13,314K + $908,804K)
= 8.97%

FormFactor Inc's return on total capital has shown fluctuations over the periods analyzed. The company's return on total capital ranged from -1.62% to 14.65% during the past five quarters. The return on total capital was relatively strong in Jun 30, 2022, where it reached 14.65%, indicating efficient utilization of both debt and equity capital to generate profits. However, in Sep 30, 2023, and Jun 30, 2023, the return on total capital was negative at -1.62% and -1.27% respectively, suggesting that the company's capital may not have been effectively employed to generate returns during those periods. Overall, the fluctuating trend in return on total capital suggests that FormFactor Inc may benefit from a more consistent and efficient capital management strategy in order to improve its financial performance.