Photronics Inc (PLAB)

Return on total capital

		Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Oct 31, 2019	Jul 28, 2019	Apr 28, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	254,583	223,727	219,483	217,948	200,304	208,808	181,786	146,519	117,925	94,554	76,020	67,494	59,391	63,928	70,419	63,883	60,378	52,122	48,660	55,700
Long-term debt	US$ in thousands	—	—	20,121	21,322	27,323	32,310	46,589	70,138	78,540	89,446	92,740	88,444	79,984	54,980	38,183	35,783	36,449	41,887	43,015	35,921
Total stockholders’ equity	US$ in thousands	1,022,960	975,008	961,212	928,047	920,765	831,527	850,318	834,399	838,425	823,692	817,892	821,392	815,502	804,962	790,242	769,191	770,676	769,892	763,394	763,568
Return on total capital		24.89%	22.95%	22.37%	22.96%	21.13%	24.17%	20.27%	16.20%	12.86%	10.35%	8.35%	7.42%	6.63%	7.43%	8.50%	7.94%	7.48%	6.42%	6.03%	6.97%

January 28, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $254,583K ÷ ($—K + $1,022,960K)
= 24.89%

Photronics, Inc.'s return on total capital has shown consistent improvement over the past few quarters, indicating the company's ability to generate returns from its capital investments. The return on total capital has ranged from 15.93% to 25.85% over the past eight quarters. This suggests that the company has been effectively utilizing its capital to generate profits. The recent increase in the return on total capital from 20.37% in Q2 2022 to 24.33% in Q1 2024 is a positive sign of the company's financial performance and efficiency in utilizing its capital resources. Overall, the upward trend in return on total capital demonstrates Photronics, Inc.'s strong financial position and effective capital management.