Photronics Inc (PLAB)

Return on total capital

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	221,518	253,050	211,866	94,554	63,928
Long-term debt	US$ in thousands	—	—	32,310	89,446	54,980
Total stockholders’ equity	US$ in thousands	1,120,860	975,008	831,527	823,692	804,962
Return on total capital		19.76%	25.95%	24.53%	10.35%	7.43%

October 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $221,518K ÷ ($—K + $1,120,860K)
= 19.76%

Photronics Inc's return on total capital has shown a fluctuating trend over the past five years. The return on total capital was 19.76% in 2024, which indicates that the company generated $0.1976 in earnings for every dollar of total capital employed. This represents a slight decrease from the previous year, where the return on total capital was 25.95%.

In 2022 and 2021, Photronics Inc achieved returns on total capital of 24.53% and 10.35%, respectively. The significant increase in 2022 reflects a strong performance in utilizing its total capital to generate profits, while the lower return in 2021 suggests a potential decrease in efficiency or profitability.

The return on total capital of 7.43% in 2020 indicates that the company's ability to generate earnings from its total capital was relatively low compared to the following years. This may suggest that the company faced challenges or inefficiencies that impacted its profitability.

Overall, while Photronics Inc's return on total capital has shown fluctuations, it is essential for the company to continue monitoring and improving its efficiency in utilizing capital to generate returns for its investors.