Qualcomm Incorporated (QCOM)
Return on total capital
| Sep 30, 2024 | Jun 23, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 11,066,000 | 9,739,000 | 9,268,000 | 8,623,000 | 8,030,000 | 10,141,000 | 12,453,000 | 13,937,000 | 15,438,000 | 15,296,000 | 13,382,000 | 12,092,000 | 10,833,000 | 10,882,000 | 9,498,000 | 7,972,000 | 6,322,000 | 3,614,000 | 8,264,000 | 8,488,000 |
| Long-term debt | US$ in thousands | 13,270,000 | 13,800,000 | 14,800,000 | 15,100,000 | 14,484,000 | 14,900,000 | 15,100,000 | 15,431,000 | 13,537,000 | 13,600,000 | 15,500,000 | 16,900,000 | 13,701,000 | 17,000,000 | 16,600,000 | 17,700,000 | 15,226,000 | 15,425,000 | 16,700,000 | 16,600,000 |
| Total stockholders’ equity | US$ in thousands | 26,274,000 | 24,670,000 | 24,469,000 | 23,058,000 | 21,581,000 | 20,670,000 | 19,698,000 | 18,810,000 | 18,013,000 | 16,048,000 | 13,328,000 | 11,333,000 | 9,950,000 | 8,177,000 | 7,424,000 | 7,380,000 | 6,077,000 | 3,306,000 | 3,045,000 | 4,513,000 |
| Return on total capital | 27.98% | 25.32% | 23.60% | 22.60% | 22.27% | 28.51% | 35.79% | 40.70% | 48.93% | 51.59% | 46.42% | 42.83% | 45.80% | 43.22% | 39.54% | 31.79% | 29.68% | 19.29% | 41.85% | 40.20% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $11,066,000K ÷ ($13,270,000K + $26,274,000K)
= 27.98%
The return on total capital for Qualcomm Incorporated has shown fluctuations over the recent quarters. The company's return on total capital ranged from 19.29% to 51.59% in the past year, indicating varying levels of efficiency in generating profits from its capital investments.
The return on total capital peaked at 51.59% in the third quarter of 2022, reflecting a high level of profitability relative to the capital employed during that period. However, it decreased in subsequent quarters but remained relatively healthy, with the lowest value recorded at 19.29% in the first quarter of 2020.
Overall, Qualcomm's return on total capital has exhibited a generally positive trend, with some fluctuations, suggesting the company has effectively utilized its capital resources to generate returns for its shareholders. Further analysis could be conducted to identify the specific factors driving these fluctuations and to evaluate the sustainability of these returns over the long term.
Peer comparison
Sep 30, 2024