MaxLinear Inc (MXL)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	-53,108	183,966	60,865	-101,900	-21,351
Long-term debt	US$ in thousands	122,375	121,757	306,153	363,592	206,909
Total stockholders’ equity	US$ in thousands	686,265	676,385	489,198	391,117	414,920
Return on total capital		-6.57%	23.05%	7.65%	-13.50%	-3.43%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-53,108K ÷ ($122,375K + $686,265K)
= -6.57%

MaxLinear Inc's return on total capital has exhibited significant fluctuations over the past five years. In 2023, the return on total capital was negative at -1.98%, indicating that the company did not generate adequate returns on the total capital employed. This represents a significant decline from the previous year, when the return on total capital was 23.22%, reflecting a substantial reduction in the company's profitability.

In 2022, the return on total capital was positive and relatively high at 23.22%, signaling a strong performance and efficient utilization of total capital to generate profits. This was an improvement from 2021, when the return on total capital stood at 8.48%, reflecting a moderate but still positive return on the total capital employed.

In contrast, the company experienced a negative return on total capital in 2020 and 2019, at -12.88% and -3.12% respectively. These figures suggest that in those years, the company failed to generate positive returns relative to the total capital invested, indicating potential inefficiencies in capital utilization and lower profitability.

Overall, the fluctuating pattern of MaxLinear Inc's return on total capital over the years reflects inconsistent performance in effectively leveraging its total capital to generate returns for the company and its shareholders. This indicates a need for further analysis of the company's capital allocation and operational efficiency.