Ichor Holdings Ltd (ICHR)
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 | -11,699 | 86,386 | 80,207 | 41,018 | 14,922 |
| Long-term debt | US$ in thousands | 241,183 | 293,218 | 285,253 | 191,522 | 169,304 |
| Total stockholders’ equity | US$ in thousands | 564,677 | 587,496 | 500,715 | 411,689 | 221,416 |
| Return on total capital | -1.45% | 9.81% | 10.20% | 6.80% | 3.82% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-11,699K ÷ ($241,183K + $564,677K)
= -1.45%
Ichor Holdings Ltd's return on total capital has exhibited fluctuations over the past five years. The return on total capital was negative at -1.45% in 2023 following a positive trend in the preceding years. In 2022, the return on total capital stood at 9.81%, showing a moderate decrease from 10.20% in 2021. The company experienced a notable improvement in 2021 compared to 2020 when the return on total capital was 6.80%. Additionally, there was a significant increase from 2019 to 2020, where the return on total capital rose from 3.82% to 6.80%.
Overall, the company's return on total capital fluctuated during this period, indicating varying levels of efficiency in generating returns from both debt and equity sources. It is essential for stakeholders to closely monitor these fluctuations and assess the company's performance and capital allocation strategies to ensure sustainable growth and value creation.
Peer comparison
Dec 31, 2023