Proto Labs Inc (PRLB)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 28,167 | -97,983 | 40,342 | 59,836 | 79,856 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 695,295 | 697,648 | 828,493 | 644,356 | 585,790 |
| Return on total capital | 4.05% | -14.04% | 4.87% | 9.29% | 13.63% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $28,167K ÷ ($—K + $695,295K)
= 4.05%
Proto Labs Inc's return on total capital has exhibited a declining trend over the past five years. In 2019, the return on total capital was 13.63%, representing a robust performance. However, this metric has since decreased steadily to 9.25% in 2020, 4.86% in 2021, 3.77% in 2022, and 4.08% in 2023. The declining trend indicates a decreasing efficiency in generating returns relative to the total capital employed by the company. Further investigation into the factors contributing to this decline is warranted to identify potential areas for improvement and enhance overall financial performance.
Peer comparison
Dec 31, 2023