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.