Impinj Inc (PI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 45,868 | -38,840 | -19,194 | -48,557 | -46,421 |
| Long-term debt | US$ in thousands | — | 281,855 | 280,244 | 278,661 | 54,556 |
| Total stockholders’ equity | US$ in thousands | 149,864 | 34,131 | 15,591 | -11,076 | 109,119 |
| Return on total capital | 30.61% | -12.29% | -6.49% | -18.15% | -28.36% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $45,868K ÷ ($—K + $149,864K)
= 30.61%
Return on total capital is a key financial metric that indicates the efficiency and profitability of a company in generating returns from its total invested capital. The trend analysis of Impinj Inc's return on total capital over the past five years shows fluctuations in performance.
As of December 31, 2020, Impinj Inc reported a negative return on total capital of -28.36%, indicating that the company was not effectively utilizing its total capital to generate profits. This negative figure improved slightly by December 31, 2021, to -18.15%, although it remained below the ideal threshold of positive returns.
By December 31, 2022, there was a further improvement in the return on total capital, with the metric standing at -6.49%. This suggests that the company's capital utilization efficiency had continued to increase. However, the return on total capital decreased to -12.29% by December 31, 2023, indicating a temporary setback in generating profits from invested capital.
The most significant improvement was observed by December 31, 2024, when Impinj Inc's return on total capital surged to 30.61%. This positive figure reflects a substantial increase in profitability relative to the capital invested, signaling potentially strong operational performance during that period.
Overall, the varying trends in Impinj Inc's return on total capital over the past five years highlight the company's efforts to enhance efficiency in capital allocation and improve profitability. It is essential for investors and stakeholders to closely monitor these fluctuations to assess the company's financial health and performance sustainability.
Peer comparison
Dec 31, 2024