MaxLinear Inc (MXL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -220,096 | -218,645 | -190,705 | -152,054 | -53,074 | 29,653 | 115,761 | 164,198 | 184,013 | 171,886 | 148,290 | 98,496 | 60,875 | 5,918 | -53,067 | -72,365 | -101,908 | -86,031 | -52,777 | -32,742 |
| Long-term debt | US$ in thousands | 122,996 | 122,840 | 122,684 | 122,529 | 122,375 | 122,219 | 122,064 | 121,910 | 121,757 | 171,607 | 246,450 | 286,298 | 306,153 | 326,027 | 343,022 | 344,116 | 363,592 | 372,457 | 207,486 | 207,197 |
| Total stockholders’ equity | US$ in thousands | 516,283 | 556,872 | 617,255 | 637,983 | 686,265 | 702,677 | 746,047 | 734,112 | 676,385 | 615,881 | 569,597 | 527,846 | 489,198 | 457,543 | 433,667 | 420,778 | 391,117 | 396,808 | 401,975 | 408,157 |
| Return on total capital | -34.43% | -32.17% | -25.77% | -19.99% | -6.56% | 3.59% | 13.33% | 19.18% | 23.06% | 21.83% | 18.17% | 12.10% | 7.65% | 0.76% | -6.83% | -9.46% | -13.50% | -11.18% | -8.66% | -5.32% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-220,096K ÷ ($122,996K + $516,283K)
= -34.43%
The return on total capital for MaxLinear Inc has exhibited fluctuating trends over the specified periods. From March 31, 2020, up to June 30, 2022, the company experienced a negative return on total capital, indicating a decline in efficiency in generating profits from its total capital base. However, from September 30, 2022, the return on total capital started to show improvement, turning positive and reaching a peak of 34.43% by December 31, 2024.
The increasing trend in the return on total capital from September 2022 suggests that MaxLinear Inc has been utilizing its total capital more effectively to generate profits. Despite the significant improvement in recent periods, the negative returns recorded in the earlier periods highlight potential inefficiencies or challenges the company faced during those times. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to generate profits from its invested capital efficiently.
Peer comparison
Dec 31, 2024