IPG Photonics Corporation (IPGP)

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 231,973 114,715 152,171 151,783 169,500 342,783 351,607 372,184 367,883 348,321 287,748 242,705 198,659 133,661 166,393 210,274 233,793 329,602 379,320 450,621
Long-term debt US$ in thousands — — — 15,734 0 0 0 15,734 16,031 16,328 32,225 33,193 34,157 35,117 36,071 37,022 37,968 38,909 39,846 40,779
Total stockholders’ equity US$ in thousands 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 2,401,730 2,380,110 2,366,650 2,267,840
Return on total capital 9.60% 4.81% 6.34% 6.45% 7.11% 13.28% 13.32% 13.67% 13.32% 12.64% 10.51% 9.08% 7.56% 5.34% 6.73% 8.79% 9.58% 13.63% 15.76% 19.52%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 a declining trend over the most recent quarters, starting at 13.08% in Q1 2022 and decreasing to 9.59% in Q4 2023. Although the return on total capital has fluctuated, it has generally been above 7.77% in the past eight quarters, indicating the company's ability to generate a reasonable return on the total capital invested in its operations. However, the decreasing trend in the return on total capital may raise concerns about the company's efficiency in generating profits relative to the capital employed. Further analysis and comparison with industry benchmarks would be beneficial to gain deeper insights into IPG Photonics Corp's performance in utilizing its total capital effectively.