Proto Labs Inc (PRLB)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 25,496 | 28,167 | 26,947 | 40,342 | 59,836 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 670,151 | 695,295 | 697,648 | 828,493 | 644,356 |
| Return on total capital | 3.80% | 4.05% | 3.86% | 4.87% | 9.29% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $25,496K ÷ ($—K + $670,151K)
= 3.80%
Proto Labs Inc's return on total capital has shown a decreasing trend over the period from December 31, 2020, to December 31, 2024. The return on total capital was 9.29% in 2020, but it gradually declined to 4.87% in 2021, 3.86% in 2022, 4.05% in 2023, and further decreased to 3.80% in 2024.
This decreasing trend indicates that Proto Labs Inc may be experiencing challenges in generating profits from its total capital investments. It suggests that the company may not be efficiently utilizing its capital to generate returns for its shareholders. It would be important for the company to assess its capital allocation strategies and operational efficiency to improve its return on total capital in the future.
Peer comparison
Dec 31, 2024