Impinj Inc (PI)
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 | 45,868 | 33,559 | 17,168 | -1,204 | -38,840 | -23,819 | -10,045 | -13,120 | -19,194 | -39,417 | -50,817 | -48,859 | -48,557 | -43,860 | -44,461 | -52,284 | -46,421 | -39,203 | -29,823 | -17,370 |
| Long-term debt | US$ in thousands | — | 0 | 0 | 282,262 | 281,855 | 281,449 | 281,046 | 280,644 | 280,244 | 279,846 | 279,449 | 279,054 | 278,661 | — | — | — | 54,556 | 53,595 | 52,669 | 51,755 |
| Total stockholders’ equity | US$ in thousands | 149,864 | 136,099 | 116,972 | 85,923 | 34,131 | 34,800 | 36,795 | 26,621 | 15,591 | 2,061 | -11,259 | -6,289 | -11,076 | 89,278 | 88,771 | 86,375 | 109,119 | 109,428 | 116,250 | 128,219 |
| Return on total capital | 30.61% | 24.66% | 14.68% | -0.33% | -12.29% | -7.53% | -3.16% | -4.27% | -6.49% | -13.98% | -18.95% | -17.91% | -18.15% | -49.13% | -50.09% | -60.53% | -28.36% | -24.05% | -17.66% | -9.65% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $45,868K ÷ ($—K + $149,864K)
= 30.61%
Impinj Inc's return on total capital has shown volatile fluctuations over the reported periods. The ratio was negative throughout the initial quarters from March 2020 to March 2022, indicating that the company's capital investments were not generating sufficient returns to cover the costs of capital.
However, starting from June 2024, the trend reversed, with a significant improvement in return on total capital. The ratio turned positive, reaching 30.61% by December 2024, indicating that the company's capital investments were finally generating substantial returns compared to the overall capital employed.
This improvement in the return on total capital from mid-2024 onwards suggests that Impinj Inc may have made strategic changes or investments that led to a more efficient use of capital and improved profitability. It is essential for investors and stakeholders to monitor this ratio closely in future periods to assess the company's ability to sustain and build upon this positive trend.
Peer comparison
Dec 31, 2024