Qualcomm Incorporated (QCOM)
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 | 8,030,000 | 15,438,000 | 10,833,000 | 6,321,000 | 8,108,000 |
| Long-term debt | US$ in thousands | 14,484,000 | 13,537,000 | 13,701,000 | 15,226,000 | 13,437,000 |
| Total stockholders’ equity | US$ in thousands | 21,581,000 | 18,013,000 | 9,950,000 | 6,077,000 | 4,909,000 |
| Return on total capital | 22.27% | 48.93% | 45.80% | 29.67% | 44.19% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,030,000K ÷ ($14,484,000K + $21,581,000K)
= 22.27%
Qualcomm Incorporated's return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital decreased to 22.27% from a high of 48.93% in 2022. This decrease in the return on total capital may indicate lower profitability or efficiency in utilizing the company's total capital to generate returns for shareholders.
Comparing the return on total capital in 2023 to the levels in 2021 and 2020, Qualcomm's performance is still relatively strong, although not as high as in 2022. It is important to note that the return on total capital was higher in 2021 and 2019 compared to 2023, suggesting that Qualcomm may need to focus on improving its capital efficiency and profitability going forward.
Overall, Qualcomm's return on total capital has been somewhat volatile, indicating the need for careful monitoring and potential strategic adjustments to optimize capital utilization and improve overall financial performance.
Peer comparison
Sep 30, 2023