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.