Micron Technology Inc (MU)
Return on total capital
| Aug 31, 2024 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,802,000 | 1,304,000 | -5,270,000 | 9,764,000 | 9,760,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 45,131,000 | 45,131,000 | 44,120,000 | 49,907,000 | 49,907,000 |
| Return on total capital | 3.99% | 2.89% | -11.94% | 19.56% | 19.56% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,802,000K ÷ ($—K + $45,131,000K)
= 3.99%
Return on total capital for Micron Technology Inc has shown variability over the past few years. It stood at 19.56% as of August 31, 2022, remaining stable as of September 1, 2022. However, the metric significantly deteriorated to -11.94% by August 31, 2023, indicating a period of unprofitability in relation to the total invested capital.
The company managed to improve its return on total capital in the subsequent years, with values of 2.89% as of August 29, 2024, and a further increase to 3.99% by August 31, 2024. Despite the improvement, the return on total capital for Micron Technology Inc in the given period remains relatively low compared to earlier periods of 19.56%.
This analysis suggests the company may have faced challenges impacting its profitability and efficiency in utilizing its total capital. It is essential for investors and stakeholders to closely monitor future financial performance to determine the sustainability of the company's returns.
Peer comparison
Aug 31, 2024