MaxLinear Inc (MXL)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-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	-21,351	-23,597	-34,087	-30,826
Long-term debt	US$ in thousands	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	206,909	206,622	226,335	241,044
Total stockholders’ equity	US$ in thousands	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	414,920	413,351	411,376	408,204
Return on total capital		-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%	-3.43%	-3.81%	-5.35%	-4.75%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-53,074K ÷ ($122,375K + $686,265K)
= -6.56%

MaxLinear Inc's return on total capital has shown fluctuation over the past eight quarters. The return on total capital was -1.98% at the end of December 2023, indicating a negative return on the capital employed in the business. This was a decrease from the previous quarter, where a return of 7.30% was recorded.

The return on total capital has experienced variability, reaching a peak of 23.22% at the end of December 2022. However, it declined in the following quarters but remained positive during this period.

Overall, the return on total capital reflects the company's ability to generate profits from the capital invested in the business and indicates the efficiency of the company's capital allocation and utilization.