Keysight Technologies Inc (KEYS)

Return on total capital

Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 1,358,000 1,334,000 1,080,000 765,000 711,000
Long-term debt US$ in thousands 1,195,000 1,793,000 1,791,000 1,789,000 1,788,000
Total stockholders’ equity US$ in thousands 4,654,000 4,161,000 3,784,000 3,297,000 3,004,000
Return on total capital 23.22% 22.41% 19.37% 15.04% 14.84%

October 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,358,000K ÷ ($1,195,000K + $4,654,000K)
= 23.22%

Keysight Technologies Inc's return on total capital has displayed fluctuating trends over the past five years. In 2023, the return on total capital stood at 20.83%, indicating a moderate decline from the previous year's figure of 22.27%. Despite this decline, the return remains relatively strong, reflecting the company's ability to generate profits from the capital invested in the business.

Comparing the most recent data to that of 2019, there has been somewhat of an overall increase, suggesting improvements in the company's capital efficiency and profit generation. This trend indicates that Keysight Technologies Inc has been able to effectively utilize its total capital to generate returns for its investors and stakeholders over the past five years.

However, it is important to consider the underlying factors that have influenced these figures, such as changes in the company's capital structure, profitability, and overall economic conditions. Examining these aspects can provide a more comprehensive understanding of the company's ability to generate returns on its total capital and its financial performance overall.


Peer comparison

Oct 31, 2023