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.