Materion Corporation (MTRN)

Return on total capital

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	138,585	150,136	143,203	140,161	123,266	99,585	91,752	80,724	80,943	72,261	50,282	36,704	11,086	20,307	27,383	41,002	67,062	65,656	75,986	68,700
Long-term debt	US$ in thousands	387,576	425,428	412,733	405,482	410,876	474,280	481,965	479,821	434,388	79,036	58,838	51,407	36,542	6,374	0	1,126	1,260	1,467	1,669	1,869
Total stockholders’ equity	US$ in thousands	885,053	871,968	847,123	821,994	799,990	766,677	749,154	730,964	720,440	697,428	681,701	661,336	655,630	644,172	638,356	630,769	645,743	597,796	594,785	566,877
Return on total capital		10.89%	11.57%	11.37%	11.42%	10.18%	8.02%	7.45%	6.67%	7.01%	9.31%	6.79%	5.15%	1.60%	3.12%	4.29%	6.49%	10.37%	10.96%	12.74%	12.08%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $138,585K ÷ ($387,576K + $885,053K)
= 10.89%

The return on total capital for Materion Corp has been showing a positive trend over the past eight quarters, indicating improving efficiency in generating returns from the total capital employed in the business. The company's return on total capital has increased steadily from 6.29% in Q1 2022 to 10.58% in Q4 2023, reflecting a consistent improvement in the company's ability to generate profits relative to its total capital base.

The progressive increase in the return on total capital indicates that Materion Corp has been effectively utilizing its capital to generate profits, signaling good financial performance and potentially efficient capital allocation strategies. This positive trend suggests that the company is able to generate higher returns for its investors relative to the amount of capital invested in the business, which can be an attractive indicator for potential investors and stakeholders.