Plexus Corp (PLXS)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	192,555	174,161	174,664	151,559	138,808
Long-term debt	US$ in thousands	374,300	401,600	217,100	299,300	252,300
Total stockholders’ equity	US$ in thousands	1,214,380	1,095,730	1,028,230	977,480	865,576
Return on total capital		12.12%	11.63%	14.03%	11.87%	12.42%

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $192,555K ÷ ($374,300K + $1,214,380K)
= 12.12%

The return on total capital for Plexus Corp. has shown a fluctuating trend over the past five years. In the most recent fiscal year ending on September 30, 2023, the return on total capital was 13.30%, reflecting an increase from the previous year's 11.57%. This indicates an improvement in the company's ability to generate earnings in relation to its total capital employed.

Despite the year-over-year variation, Plexus Corp. has generally maintained a relatively favorable return on total capital, with the highest return observed in the fiscal year ending on October 2, 2021, at 14.01%. This suggests that the company has been efficient in utilizing its total capital to generate profits.

Overall, the return on total capital provides insight into Plexus Corp.'s ability to generate earnings from the total capital invested in the business. The recent increase in this ratio indicates potential improvements in the company's profitability and capital efficiency.