Ichor Holdings Ltd (ICHR)

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 -11,699 14,055 51,665 80,015 86,386 84,123 72,667 72,516 80,207 78,461 69,450 53,559 41,018 32,762 23,837 17,540 14,922 15,445 23,712 46,803
Long-term debt US$ in thousands 241,183 272,942 284,701 291,459 293,218 294,977 296,736 283,495 285,253 158,810 157,630 159,576 191,522 193,467 195,413 172,359 169,304 169,250 183,008 184,954
Total stockholders’ equity US$ in thousands 564,677 572,679 577,303 593,464 587,496 569,845 -91,578 -91,578 500,715 480,656 458,483 431,062 411,689 254,667 238,190 229,520 221,416 207,190 203,731 201,680
Return on total capital -1.45% 1.66% 5.99% 9.04% 9.81% 9.73% 35.42% 37.79% 10.20% 12.27% 11.27% 9.07% 6.80% 7.31% 5.50% 4.36% 3.82% 4.10% 6.13% 12.11%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-11,699K ÷ ($241,183K + $564,677K)
= -1.45%

Ichor Holdings Ltd's return on total capital has displayed some level of volatility over the past few quarters. The return on total capital was consistently strong in the first half of 2022, reaching as high as 37.79% in March 2022. However, there was a notable decline in the return on total capital in the second half of 2022 and the first quarter of 2023.

The return on total capital rebounded in the second quarter of 2023, showing a significant increase to 35.42%. This was followed by further improvement in the third and fourth quarters of 2023, with returns of 5.99% and 1.66% respectively.

Overall, while the return on total capital for Ichor Holdings Ltd has fluctuated, it is essential to monitor the trend over time to assess the company's ability to generate returns from its invested capital effectively.