Mercury Systems Inc (MRCY)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -16,994 | -53,279 | -87,427 | -126,601 | -154,260 | -152,331 | -103,012 | -54,445 | -23,444 | 20,604 | 38,212 | 42,993 | 46,878 | 40,737 | 46,146 | 69,146 | 96,199 | 92,445 | 95,523 | 97,273 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,473,460 | 1,451,090 | 1,460,280 | 1,459,840 | 1,472,780 | 1,472,790 | 1,504,490 | 1,540,810 | 1,566,680 | 1,560,900 | 1,544,090 | 1,538,930 | 1,537,180 | 1,500,440 | 1,487,120 | 1,479,480 | 1,484,150 | 1,453,980 | 1,430,630 | 1,407,890 |
| Return on total capital | -1.15% | -3.67% | -5.99% | -8.67% | -10.47% | -10.34% | -6.85% | -3.53% | -1.50% | 1.32% | 2.47% | 2.79% | 3.05% | 2.72% | 3.10% | 4.67% | 6.48% | 6.36% | 6.68% | 6.91% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-16,994K ÷ ($—K + $1,473,460K)
= -1.15%
The analysis of Mercury Systems Inc.'s return on total capital over the specified period reveals a significant declining trend. Initially, the company demonstrated a relatively healthy return of 6.91% as of September 30, 2020. This metric experienced a gradual decline throughout the subsequent quarters, declining to 6.68% by December 31, 2020, and further decreasing to 6.36% by March 31, 2021. The downward trajectory continued with modest fluctuations, reaching approximately 4.67% in September 2021 and dropping sharply to 3.10% by December 2021.
From the first quarter of 2022 onward, the return on total capital consistently declined, with figures falling to 2.72% by March 2022, then marginally rising to 3.05% in June 2022, before gradually decreasing again to 2.79% and 2.47% by December 2022. The decline persisted into 2023, with the figure declining to 1.32% by March 2023 and turning negative in subsequent quarters, reaching -1.50% in June 2023 and further deteriorating to -3.53% in September 2023.
The decline intensified in the last reported periods, with the return remaining negative and worsening to -6.85% as of December 2023, and further declining to -10.34% by March 2024, and to -10.47% in June 2024. Although a slight improvement was observed thereafter, the return continued to be negative, with -8.67% as of September 2024, -5.99% as of December 2024, and gradually approaching closer to zero at -3.67% by March 2025 and -1.15% by June 2025.
In summary, Mercury Systems Inc. has experienced a persistent decline in its return on total capital over this period, shifting from a positive and relatively robust level to consistently negative territory, suggesting challenges in generating adequate returns on its total capital base. The negative trend indicates increasing difficulty in translating invested capital into profitable operations or possibly structural or market-related issues affecting profitability.
Peer comparison
Jun 30, 2025