Impinj Inc (PI)
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 | -38,840 | -19,194 | -48,557 | -46,421 | -20,995 |
| Long-term debt | US$ in thousands | 281,855 | 280,244 | 278,661 | 54,556 | 50,876 |
| Total stockholders’ equity | US$ in thousands | 34,131 | 15,591 | -11,076 | 109,119 | 125,239 |
| Return on total capital | -12.29% | -6.49% | -18.15% | -28.36% | -11.92% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-38,840K ÷ ($281,855K + $34,131K)
= -12.29%
The return on total capital for Impinj Inc has fluctuated over the past five years, ranging from -28.36% in 2020 to -6.49% in 2022. The return on total capital measures the company's ability to generate profits from the capital invested in the business, taking into account both equity and debt.
The negative values indicate that in those years, the company's capital has not been efficiently utilized to generate returns for its investors. This could be a result of factors such as high operating expenses, low profit margins, or inefficient asset utilization.
Overall, the trend shows a struggle in effectively using the company's capital to generate returns for shareholders. It would be important for Impinj Inc to assess and address the factors contributing to the negative return on total capital in order to improve financial performance and create value for its stakeholders.
Peer comparison
Dec 31, 2023