Kulicke and Soffa Industries Inc (KLIC)

Return on total capital

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-73,749	-47,464	-51,382	65,554	72,343	114,938	234,814	343,996	477,196	560,983	557,767	511,562	414,674	283,141	174,409	104,514	66,014	53,317	46,813	34,473
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	944,009	973,538	1,012,180	1,161,250	1,174,560	1,169,710	1,183,700	1,177,230	1,194,650	1,206,730	1,137,250	1,207,180	1,095,240	973,342	866,860	807,616	757,994	749,644	762,398	775,653
Return on total capital		-7.81%	-4.88%	-5.08%	5.65%	6.16%	9.83%	19.84%	29.22%	39.94%	46.49%	49.05%	42.38%	37.86%	29.09%	20.12%	12.94%	8.71%	7.11%	6.14%	4.44%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-73,749K ÷ ($—K + $944,009K)
= -7.81%

The return on total capital for Kulicke and Soffa Industries Inc has shown fluctuations over the past few quarters. After reaching a peak of 49.05% in June 2022, the return on total capital has been on a declining trend, dropping to -7.81% as of September 2024. This negative return indicates that the company's total capital is not generating sufficient returns to cover its costs and investors' expectations.

The declining trend in return on total capital could imply various issues such as inefficient capital allocation, decreasing profitability, or increasing capital costs. Investors and stakeholders may be concerned about the company's ability to optimize its capital investments and generate sustainable returns in the long term.

It is crucial for the company to closely monitor and address the factors contributing to the decline in return on total capital to improve its financial performance and regain investor confidence. Additional analysis into the company's operations, profitability, and capital structure may be necessary to identify the underlying causes of the decreasing return on total capital.