MaxLinear Inc (MXL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -223,352 | -53,108 | 183,966 | 60,865 | -101,900 |
| Long-term debt | US$ in thousands | 122,996 | 122,375 | 121,757 | 306,153 | 363,592 |
| Total stockholders’ equity | US$ in thousands | 516,283 | 686,265 | 676,385 | 489,198 | 391,117 |
| Return on total capital | -34.94% | -6.57% | 23.05% | 7.65% | -13.50% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-223,352K ÷ ($122,996K + $516,283K)
= -34.94%
Return on total capital is a key indicator of a company's efficiency in generating returns from its total invested capital. Analyzing MaxLinear Inc's return on total capital from 2020 to 2024 reflects fluctuations in the company's financial performance.
- In December 2020, MaxLinear Inc had a negative return on total capital of -13.50%, indicating that the company's operations did not generate sufficient returns to cover the total invested capital.
- By December 2021, the return on total capital improved to 7.65%, suggesting a recovery in the company's efficiency in utilizing its capital to generate returns.
- The positive trend continued in December 2022, with a notable increase in the return on total capital to 23.05%, signifying improved profitability and effective capital management by the company.
- However, in December 2023, the return on total capital declined to -6.57%, indicating a setback in the company's ability to generate returns compared to its capital investment.
- The performance deteriorated significantly in December 2024, with a return on total capital of -34.94%, reflecting a substantial decrease in the company's efficiency in utilizing its total capital effectively.
Overall, MaxLinear Inc's return on total capital demonstrates variability over the years, highlighting fluctuations in the company's profitability and efficiency in capital allocation. Further analysis and exploration of the underlying factors driving these fluctuations would be crucial in understanding the company's financial performance and strategic decisions.
Peer comparison
Dec 31, 2024