IPG Photonics Corporation (IPGP)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 14,580 29,917 112,891 172,613 231,566 185,240 180,669 195,652 210,033 304,726 352,656 358,419 360,181 352,952 329,312 295,374 231,510 210,908 211,149 246,173
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total stockholders’ equity US$ in thousands 2,024,470 2,114,610 2,253,370 2,340,720 2,415,380 2,383,950 2,398,550 2,338,520 2,385,360 2,580,510 2,639,220 2,707,250 2,746,580 2,739,350 2,704,920 2,639,500 2,592,820 2,470,210 2,436,350 2,355,070
Return on total capital 0.72% 1.41% 5.01% 7.37% 9.59% 7.77% 7.53% 8.37% 8.81% 11.81% 13.36% 13.24% 13.11% 12.88% 12.17% 11.19% 8.93% 8.54% 8.67% 10.45%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $14,580K ÷ ($—K + $2,024,470K)
= 0.72%

IPG Photonics Corporation's return on total capital has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 10.45% in March 2020 and reached its peak at 13.36% in June 30, 2022. Subsequently, there was a decline in the ratio, dropping to 0.72% by December 31, 2024.

Overall, the return on total capital demonstrates some volatility, with periods of growth followed by declines. Investors and stakeholders should closely monitor this ratio to assess the company's efficiency in generating returns from its total capital investment.