Micron Technology Inc (MU)
Return on total capital
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Aug 29, 2024 | May 31, 2024 | May 30, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Jun 1, 2023 | May 31, 2023 | Mar 2, 2023 | Feb 28, 2023 | Dec 1, 2022 | Nov 30, 2022 | Sep 1, 2022 | Aug 31, 2022 | Jun 2, 2022 | May 31, 2022 | Mar 3, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,308,000 | 6,303,000 | 4,892,000 | 3,560,000 | 910,000 | -1,427,000 | -3,924,000 | -5,804,000 | -6,845,000 | -7,676,000 | -6,174,000 | -4,720,000 | -958,000 | 2,866,000 | 6,030,000 | 9,146,000 | 10,126,000 | 11,151,000 | 10,693,000 | 10,320,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 48,633,000 | 46,797,000 | 45,131,000 | 45,131,000 | 44,225,000 | 44,225,000 | 43,870,000 | 42,885,000 | 44,120,000 | 45,405,000 | 45,405,000 | 47,257,000 | 47,257,000 | 49,306,000 | 49,306,000 | 49,907,000 | 49,907,000 | 49,281,000 | 49,281,000 | 47,845,000 |
| Return on total capital | 15.03% | 13.47% | 10.84% | 7.89% | 2.06% | -3.23% | -8.94% | -13.53% | -15.51% | -16.91% | -13.60% | -9.99% | -2.03% | 5.81% | 12.23% | 18.33% | 20.29% | 22.63% | 21.70% | 21.57% |
February 28, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $7,308,000K ÷ ($—K + $48,633,000K)
= 15.03%
Micron Technology Inc's return on total capital has shown fluctuations over the period covered in the data provided. The ratio ranged from a high of 22.63% on June 2, 2022, to a low of -16.91% on June 1, 2023.
The return on total capital decreased significantly towards negative values in the latter part of 2023, with the ratio hitting its lowest point at -16.91% by June 1, 2023. However, the company managed to improve its performance in the subsequent periods. By February 28, 2025, the return on total capital had increased to 15.03%, indicating a recovery in the company's capital efficiency.
Overall, the trend in Micron Technology Inc's return on total capital suggests that the company has experienced ups and downs in generating returns relative to its total capital employed. Investors and analysts may want to further investigate factors contributing to these fluctuations to assess the company's financial performance and sustainability.
Peer comparison
Feb 28, 2025