Materion Corporation (MTRN)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 47,223 | 113,210 | 119,156 | 123,164 | 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 |
| Long-term debt | US$ in thousands | 407,734 | 457,756 | 445,990 | 428,710 | 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 |
| Total stockholders’ equity | US$ in thousands | 868,881 | 931,895 | 907,085 | 889,923 | 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 |
| Return on total capital | 3.70% | 8.15% | 8.81% | 9.34% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $47,223K ÷ ($407,734K + $868,881K)
= 3.70%
Materion Corporation's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 6.49% in March 2020 and declined to 1.60% by December 2020. However, there was a gradual improvement in the ratio over the following quarters, reaching a peak of 11.57% in September 2023.
Subsequently, there was a slight decline in the ratio to 10.89% by December 2023 and a more significant decrease to 9.34% by March 2024. The return on total capital further decreased to 3.70% by December 2024, marking a considerable drop compared to the previous quarters.
Overall, Materion Corporation's return on total capital displayed variability throughout the analyzed period, with fluctuations in the performance of the company's capital utilization and profitability. Further analysis and examination of the underlying factors driving these changes would be beneficial for a deeper understanding of Materion Corporation's financial performance.