Littelfuse Inc (LFUS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 190,580 | 360,862 | 469,160 | 359,552 | 182,330 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,413,610 | 2,480,170 | 2,211,380 | 1,893,520 | 1,608,770 |
| Return on total capital | 7.90% | 14.55% | 21.22% | 18.99% | 11.33% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $190,580K ÷ ($—K + $2,413,610K)
= 7.90%
The return on total capital of Littelfuse Inc has shown varying trends over the past five years. In 2020, the return on total capital was 11.33%, which increased significantly to 18.99% in 2021 and further to 21.22% in 2022. This indicates an improvement in the company's ability to generate returns from its total capital employed.
However, there was a slight decline in the return on total capital in 2023 to 14.55%, followed by a more notable decrease to 7.90% in 2024. This suggests a decrease in the efficiency of the company in utilizing its total capital to generate returns.
Overall, the return on total capital has shown some volatility, with periods of growth followed by periods of decline. It is important for stakeholders to closely monitor this metric to ensure that the company is effectively deploying its capital to generate optimal returns.
Peer comparison
Dec 31, 2024