Plexus Corp (PLXS)

Return on total capital

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	158,408	192,555	174,161	174,664	151,559
Long-term debt	US$ in thousands	197,800	374,300	401,600	217,100	299,300
Total stockholders’ equity	US$ in thousands	1,324,820	1,214,380	1,095,730	1,028,230	977,480
Return on total capital		10.40%	12.12%	11.63%	14.03%	11.87%

September 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $158,408K ÷ ($197,800K + $1,324,820K)
= 10.40%

The return on total capital for Plexus Corp has fluctuated over the five-year period presented. In the most recent fiscal year as of September 30, 2024, the return on total capital was 10.40%, showing a decrease from the previous year's 12.12%. This decline suggests that the company may not be generating as much profit relative to its total invested capital.

Comparing the return on total capital to previous years, we can observe some variability in performance. The company achieved its highest return on total capital of 14.03% in September 30, 2021, indicating strong profitability relative to capital employed. However, it saw a slight decrease in the following year to 11.87%.

Overall, the trend in the return on total capital for Plexus Corp indicates some fluctuations, with the company experiencing both increases and decreases in profitability relative to total capital over the five-year period. It is important for the company to further analyze the factors influencing these fluctuations to make informed strategic decisions and improve overall financial performance.