NXP Semiconductors NV (NXPI)
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 | 3,758,000 | 3,743,000 | 2,512,000 | 331,000 | 633,000 |
| Long-term debt | US$ in thousands | — | — | — | — | 0 |
| Total stockholders’ equity | US$ in thousands | 8,644,000 | 7,449,000 | 6,528,000 | 8,944,000 | 9,441,000 |
| Return on total capital | 43.48% | 50.25% | 38.48% | 3.70% | 6.70% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,758,000K ÷ ($—K + $8,644,000K)
= 43.48%
The return on total capital for NXP Semiconductors NV has shown mixed performance over the past five years. In 2023, the return on total capital was 18.51%, indicating a decrease from the previous year's 20.38%. Despite the decrease, the return in 2023 remains at a relatively favorable level.
Looking back further, the return on total capital in 2021 was 15.09%, showing an improvement from the lower returns in 2020 and 2019, which were 1.81% and 3.67% respectively. The significant increase from 2020 to 2021 signals better utilization of total capital, leading to a more efficient operation of the company.
Overall, while there have been fluctuations in the return on total capital for NXP Semiconductors NV, the company has generally demonstrated an ability to generate a reasonable return on the total capital employed, reflecting a degree of efficiency in deploying its capital resources.
Peer comparison
Dec 31, 2023