MACOM Technology Solutions Holdings Inc (MTSI)

Return on total capital

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	96,662	127,542	251,671	65,008	-14,182
Long-term debt	US$ in thousands	448,281	447,134	565,920	492,097	652,172
Total stockholders’ equity	US$ in thousands	1,126,340	947,600	842,748	471,736	300,146
Return on total capital		6.14%	9.14%	17.87%	6.74%	-1.49%

September 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $96,662K ÷ ($448,281K + $1,126,340K)
= 6.14%

MACOM Technology Solutions Holdings Inc's return on total capital has varied over the past five years. In 2024, the return on total capital was 6.14%, lower than the previous year's 9.14%. This decrease may indicate a decrease in efficiency in generating returns on the total capital employed in the business. However, if we look back to 2022, the return on total capital was significantly higher at 17.87%, showing a strong performance in utilizing the capital to generate returns.

In 2021, the return on total capital was 6.74%, indicating a relatively stable performance compared to 2024. Notably, in 2020, the company had a negative return on total capital of -1.49%, suggesting that the capital employed in the business did not generate positive returns during that year.

Overall, the trend in return on total capital for MACOM Technology Solutions Holdings Inc shows fluctuations, with some years performing better than others. It is essential for investors and stakeholders to monitor these metrics closely to assess the company's efficiency in utilizing its capital resources.