MACOM Technology Solutions Holdings Inc (MTSI)

Return on total capital

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	73,667	61,740	59,330	79,827	107,400	132,955	151,665	148,277	251,671	236,213	221,210	210,545	65,008	61,834	23,438	613	-14,182	-57,236	-356,922	-392,250
Long-term debt	US$ in thousands	448,281	447,994	447,707	447,421	447,134	446,848	566,743	566,332	565,920	565,509	565,097	564,686	492,097	488,043	492,173	650,931	652,172	652,947	653,722	654,497
Total stockholders’ equity	US$ in thousands	1,126,340	1,081,050	1,045,610	1,024,090	947,600	914,708	894,015	862,544	842,748	595,640	554,283	524,774	471,736	445,793	412,133	329,450	300,146	273,304	285,731	293,520
Return on total capital		4.68%	4.04%	3.97%	5.42%	7.70%	9.76%	10.38%	10.38%	17.87%	20.34%	19.76%	19.33%	6.74%	6.62%	2.59%	0.06%	-1.49%	-6.18%	-37.99%	-41.38%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $73,667K ÷ ($448,281K + $1,126,340K)
= 4.68%

The return on total capital for MACOM Technology Solutions Holdings Inc has exhibited fluctuations over the past few quarters. The trend shows variability in performance, with some periods reflecting higher returns and others displaying lower returns.

In the most recent quarter, the return on total capital was 4.68%, which indicates a moderate level of profitability generated from the company's total invested capital. This figure represents a slight increase from the previous quarter's return of 4.04%.

Looking back over the historical data, there have been periods of higher returns, such as in the second quarter of 2022 and the first quarter of 2022, where the returns were notably higher at 20.34% and 19.76% respectively. These periods likely indicate strong operational performance and efficient utilization of capital.

On the other hand, there have been quarters, such as the first quarter of 2020 and the second quarter of 2021, where the return on total capital was negative, indicating that the company did not generate sufficient profits to cover the cost of capital.

Overall, the return on total capital trend for MACOM Technology Solutions Holdings Inc shows variability in performance, with fluctuations in profitability and capital efficiency. It is essential for investors and analysts to closely monitor these ratios to assess the company's ability to generate returns on the total capital employed.