Harmonic Inc (HLIT)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	21,837	45,519	19,496	-14,708	5,055
Long-term debt	US$ in thousands	10,495	11,161	111,930	139,593	88,629
Total stockholders’ equity	US$ in thousands	436,874	324,506	295,913	258,302	252,446
Return on total capital		4.88%	13.56%	4.78%	-3.70%	1.48%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $21,837K ÷ ($10,495K + $436,874K)
= 4.88%

Harmonic, Inc.'s return on total capital has fluctuated over the past five years, indicating varying levels of efficiency in generating returns from its total invested capital. In 2023, the return on total capital decreased to 4.05% from 10.75% in 2022, reflecting a significant decline in performance. Despite the drop, the return remained positive, indicating that the company was able to generate a return above its total capital cost.

Compared to the negative return of -2.47% in 2020, the company has shown improvement in its capital efficiency over the last three years. However, the return in 2023 was still lower than the levels achieved in 2022 and 2019, suggesting a potential need for further improvements in utilizing its total capital effectively to generate returns for its shareholders.

Overall, Harmonic, Inc.'s return on total capital over the past five years reflects a mix of positive and negative trends, highlighting the importance of consistent monitoring and optimization of capital utilization to enhance financial performance and create value for investors.