Harmonic Inc (HLIT)

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	65,259	22,172	45,519	19,490	-14,708
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	465,258	436,874	324,506	296,796	258,302
Return on total capital		14.03%	5.08%	14.03%	6.57%	-5.69%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $65,259K ÷ ($—K + $465,258K)
= 14.03%

Based on the data provided, Harmonic Inc's return on total capital has shown fluctuations over the years.

In December 2020, the return on total capital was negative at -5.69%, indicating that the company's capital utilization was inefficient and it was generating a return below the cost of capital.

However, there was a significant improvement by December 2021, with the return increasing to 6.57%. This shows that the company's capital efficiency improved, generating a positive return compared to the previous year.

By December 2022, the return on total capital further increased to 14.03%, indicating that Harmonic Inc's capital utilization was more effective, generating a higher return relative to the capital invested.

The return on total capital decreased slightly to 5.08% by December 2023, suggesting that there might have been some challenges or inefficiencies in capital management during that period.

Finally, by December 2024, the return on total capital rebounded to 14.03%, reaching the same level as 2022. This suggests that the company managed to improve its capital efficiency and generate a strong return on the capital invested.

Overall, the trend in Harmonic Inc's return on total capital demonstrates variability but with overall improvement and resilience in maintaining a positive return on capital over the years.