IPG Photonics Corporation (IPGP)
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 | 231,973 | 169,500 | 367,883 | 198,659 | 233,793 |
| Long-term debt | US$ in thousands | — | 0 | 16,031 | 34,157 | 37,968 |
| Total stockholders’ equity | US$ in thousands | 2,415,380 | 2,385,360 | 2,746,580 | 2,592,820 | 2,401,730 |
| Return on total capital | 9.60% | 7.11% | 13.32% | 7.56% | 9.58% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $231,973K ÷ ($—K + $2,415,380K)
= 9.60%
The Return on Total Capital for IPG Photonics Corp has shown some fluctuations over the past five years. In 2021, the company achieved a high return of 12.69%, indicating efficient utilization of both debt and equity in generating profits. This was followed by a slight decrease to 11.90% in 2019. However, in the subsequent years, the return declined to 8.80% in 2020, and further dropped to 9.64% and 9.59% in 2022 and 2023 respectively.
The variations in Return on Total Capital suggest that IPG Photonics Corp may have experienced changes in its capital structure or operational efficiency during the period under consideration. Further analysis of the company's financial performance and strategic decisions would be essential to understand the factors driving these trends.
Peer comparison
Dec 31, 2023