Materion Corporation (MTRN)
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 | 47,223 | 136,444 | 119,755 | 77,111 | 8,215 |
| Long-term debt | US$ in thousands | 407,734 | 387,576 | 410,876 | 434,388 | 36,542 |
| Total stockholders’ equity | US$ in thousands | 868,881 | 885,053 | 799,990 | 720,440 | 655,630 |
| Return on total capital | 3.70% | 10.72% | 9.89% | 6.68% | 1.19% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $47,223K ÷ ($407,734K + $868,881K)
= 3.70%
Materion Corporation's return on total capital has shown variances over the period from December 31, 2020, to December 31, 2024. The return on total capital was 1.19% in 2020, which increased significantly to 6.68% in 2021. Subsequently, there was a notable improvement as the return on total capital reached 9.89% in 2022 and further increased to 10.72% in 2023. However, there was a decrease in the return on total capital to 3.70% in 2024.
Overall, Materion Corporation witnessed a positive trend in its return on total capital from 2020 to 2023, indicating the company's ability to efficiently generate returns from its total capital investments. The decline in 2024 could be a point of concern and may require further analysis to understand the underlying factors impacting the return on total capital during that period.