Micron Technology Inc (MU)
Return on total capital
| Aug 29, 2024 | May 30, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Jun 1, 2023 | Mar 2, 2023 | Dec 1, 2022 | Sep 1, 2022 | Jun 2, 2022 | Mar 3, 2022 | Dec 2, 2021 | Sep 2, 2021 | Jun 3, 2021 | Mar 4, 2021 | Dec 3, 2020 | Sep 3, 2020 | May 28, 2020 | Feb 27, 2020 | Nov 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,667,000 | -1,180,000 | -3,677,000 | -6,161,000 | -5,268,000 | -2,350,000 | 2,316,000 | 7,058,000 | 9,764,000 | 11,168,000 | 9,986,000 | 8,106,000 | 6,438,000 | 4,615,000 | 3,691,000 | 3,470,000 | 3,161,000 | 2,658,000 | 2,470,000 | 3,924,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 45,131,000 | 44,225,000 | 43,870,000 | 42,885,000 | 44,120,000 | 45,405,000 | 47,257,000 | 49,306,000 | 49,907,000 | 49,281,000 | 47,845,000 | 45,908,000 | 43,933,000 | 42,259,000 | 40,663,000 | 39,907,000 | 38,996,000 | 37,820,000 | 37,023,000 | 36,500,000 |
| Return on total capital | 3.69% | -2.67% | -8.38% | -14.37% | -11.94% | -5.18% | 4.90% | 14.31% | 19.56% | 22.66% | 20.87% | 17.66% | 14.65% | 10.92% | 9.08% | 8.70% | 8.11% | 7.03% | 6.67% | 10.75% |
August 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,667,000K ÷ ($—K + $45,131,000K)
= 3.69%
Return on total capital is a key financial ratio that reflects how efficiently a company is generating profits from its total capital employed. For Micron Technology Inc, the return on total capital has shown fluctuations over the past 20 periods, ranging from as low as -14.37% to as high as 22.66%.
The company experienced a negative return on total capital in several periods, notably in February 2024, indicating challenges in generating profits relative to the total capital invested. However, the return on total capital improved significantly in subsequent periods, reaching a high of 22.66% in June 2022, showcasing strong efficiency in capital utilization.
The return on total capital has generally trended positively over the periods, with occasional fluctuations. This indicates that Micron Technology Inc has been successful in enhancing its profitability relative to the capital employed, although some periods have shown lower efficiency.
Overall, analyzing the return on total capital for Micron Technology Inc provides insights into the company's ability to generate returns for its investors and optimize the utilization of its total capital base.
Peer comparison
Aug 29, 2024