Keysight Technologies Inc (KEYS)
Return on total capital
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 949,000 | 1,358,000 | 1,334,000 | 1,080,000 | 765,000 |
| Long-term debt | US$ in thousands | 1,790,000 | 1,195,000 | 1,793,000 | 1,791,000 | 1,789,000 |
| Total stockholders’ equity | US$ in thousands | 5,105,000 | 4,654,000 | 4,161,000 | 3,784,000 | 3,297,000 |
| Return on total capital | 13.76% | 23.22% | 22.41% | 19.37% | 15.04% |
October 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $949,000K ÷ ($1,790,000K + $5,105,000K)
= 13.76%
Keysight Technologies Inc's return on total capital has fluctuated over the past five years. In the most recent fiscal year ending on October 31, 2024, the return on total capital was 13.76%, showing a decrease from the previous year. This decline from 23.22% in 2023 to 13.76% in 2024 may indicate a potential decrease in the company's efficiency in generating returns from its total capital employed.
However, it is important to note that Keysight Technologies Inc's return on total capital has generally been favorable over the past five years, consistently exceeding 15%. This suggests that the company has effectively utilized its total capital to generate returns for its shareholders and stakeholders.
Overall, while the recent decrease in the return on total capital may raise some concerns, the company's historical performance indicates a solid track record of efficiently deploying capital to generate returns. Further analysis of the underlying factors contributing to the fluctuations in return on total capital would provide deeper insights into the company's financial performance and strategic decisions.
Peer comparison
Oct 31, 2024