IPG Photonics Corporation (IPGP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,477 | 231,566 | 294,966 | 368,320 | 231,510 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,024,470 | 2,415,380 | 2,385,360 | 2,746,580 | 2,592,820 |
| Return on total capital | 0.72% | 9.59% | 12.37% | 13.41% | 8.93% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $14,477K ÷ ($—K + $2,024,470K)
= 0.72%
IPG Photonics Corporation's return on total capital has shown some variation over the years, based on the provided data. The return on total capital was 8.93% as of December 31, 2020, indicating the company was generating a modest return on the total capital invested. Subsequently, there was an improvement to 13.41% as of December 31, 2021, suggesting better efficiency in utilizing its total capital.
In the following years, the return on total capital remained relatively stable at 12.37% as of December 31, 2022. However, there was a slight decline to 9.59% as of December 31, 2023, reflecting a decrease in efficiency in generating returns on the total capital.
The most recent data point shows a significant decrease in the return on total capital to 0.72% as of December 31, 2024. This sharp decline may indicate challenges in deploying the total capital effectively to generate returns for the company.
Overall, the trend in IPG Photonics Corporation's return on total capital suggests some fluctuations and potential areas for improvement in efficiently utilizing its total capital to generate returns for its investors and stakeholders.
Peer comparison
Dec 31, 2024