Plexus Corp (PLXS)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	178,688	192,555	200,489	222,082	200,646	174,136	154,263	143,164	158,792	174,693	181,741	191,269	158,884	151,568	139,106	126,905	140,812	138,781	137,963	136,996
Long-term debt	US$ in thousands	388,200	374,300	439,000	428,300	461,500	401,600	383,500	360,300	298,900	217,100	212,000	199,600	302,500	299,300	298,300	249,500	219,400	252,300	287,600	237,500
Total stockholders’ equity	US$ in thousands	1,266,760	1,214,380	1,184,360	1,182,380	1,150,260	1,095,730	1,058,190	1,040,590	1,044,100	1,028,230	1,020,450	1,013,950	1,006,960	977,480	944,821	892,558	908,372	865,576	860,791	875,444
Return on total capital		10.80%	12.12%	12.35%	13.79%	12.45%	11.63%	10.70%	10.22%	11.82%	14.03%	14.75%	15.76%	12.13%	11.87%	11.19%	11.11%	12.49%	12.41%	12.01%	12.31%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $178,688K ÷ ($388,200K + $1,266,760K)
= 10.80%

Plexus Corp's return on total capital has shown a fluctuating trend over the past few quarters. The company's return on total capital ranged from a low of 10.22% in March 2022 to a high of 15.76% in June 2021. The return on total capital has generally remained above 10%, indicating that Plexus Corp has been able to generate positive returns on the capital employed in its business operations.

The highest return on total capital of 15.76% in June 2021 suggests that Plexus Corp was particularly efficient in utilizing its total capital to generate profits during that period. On the other hand, the lowest return on total capital of 10.22% in March 2022 may indicate a period of lower profitability or less effective capital utilization.

Overall, the return on total capital metric provides insight into how well Plexus Corp is generating returns for its investors and stakeholders relative to the total amount of capital employed in the business. Further analysis and comparison with industry benchmarks could help in evaluating Plexus Corp's performance in relation to its peers.