Keysight Technologies Inc (KEYS)
Return on total capital
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,285,000 | 1,358,000 | 1,420,000 | 1,412,000 | 1,385,000 | 1,334,000 | 1,304,000 | 1,231,000 | 1,139,000 | 1,080,000 | 1,009,000 | 907,000 | 774,000 | 765,000 | 695,000 | 710,000 | 793,000 | 711,000 | -77,000 | -157,000 |
| Long-term debt | US$ in thousands | 1,208,000 | 1,195,000 | 1,794,000 | 1,793,000 | 1,793,000 | 1,793,000 | 1,792,000 | 1,792,000 | 1,791,000 | 1,791,000 | 1,791,000 | 1,790,000 | 1,790,000 | 1,789,000 | 1,789,000 | 1,788,000 | 1,788,000 | 1,788,000 | 1,292,000 | 1,292,000 |
| Total stockholders’ equity | US$ in thousands | 4,817,000 | 4,654,000 | 4,897,000 | 4,705,000 | 4,404,000 | 4,161,000 | 3,920,000 | 3,779,000 | 3,810,000 | 3,784,000 | 3,750,000 | 3,545,000 | 3,536,000 | 3,297,000 | 3,354,000 | 3,085,000 | 3,127,000 | 3,004,000 | 2,938,000 | 2,798,000 |
| Return on total capital | 21.33% | 23.22% | 21.22% | 21.73% | 22.35% | 22.41% | 22.83% | 22.10% | 20.34% | 19.37% | 18.21% | 17.00% | 14.53% | 15.04% | 13.51% | 14.57% | 16.13% | 14.84% | -1.82% | -3.84% |
January 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,285,000K ÷ ($1,208,000K + $4,817,000K)
= 21.33%
Keysight Technologies Inc.'s return on total capital has displayed a consistent and generally stable performance over the past eight quarters. The return on total capital ranged from a high of 22.78% in Q3 2022 to a low of 18.75% in Q1 2024. Despite some fluctuations, the company has managed to maintain relatively strong returns on its total capital during this period.
The highest return on total capital was achieved in Q3 2022 at 22.78%, indicating efficient utilization of capital to generate profits. This was followed by Q2 2022 and Q4 2022, with returns of 22.27% and 22.10%, respectively. The company's performance remained above the 20% mark for most of the quarters, reflecting an effective management of resources and investments.
However, there was a slight decline in the return on total capital in the most recent quarter, Q1 2024, which dropped to 18.75%. This decrease may warrant further investigation into the reasons behind the decline and whether it is indicative of a potential trend or simply a temporary fluctuation.
Overall, Keysight Technologies Inc. has demonstrated a consistent ability to generate returns on its total capital, showcasing sound financial management and efficient capital deployment strategies.
Peer comparison
Jan 31, 2024