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.