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