Qualcomm Incorporated (QCOM)
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 | 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 | 8,108,000 | 6,751,000 | 2,236,000 |
| Long-term debt | US$ in thousands | 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 | 13,437,000 | 13,426,000 | 15,405,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 4,909,000 | 5,463,000 | 3,866,000 |
| Return on total capital | 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% | 44.19% | 35.74% | 11.60% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,623,000K ÷ ($15,100,000K + $23,058,000K)
= 22.60%
Qualcomm Incorporated's return on total capital has shown fluctuations over the past five years. The company's return on total capital ranged from a low of 11.60% in the first quarter of 2020 to a high of 51.59% in the second quarter of 2022.
The return on total capital for Qualcomm has generally been on an upward trend from 2019 to 2022, with occasional fluctuations. The ratios for the most recent quarters in 2023 show a declining trend compared to the previous year, reaching 22.60% in the fourth quarter.
Overall, Qualcomm's return on total capital indicates that the company has been effectively generating profits relative to its total capital employed, although it is important to closely monitor future trends to assess the sustainability of their performance.
Peer comparison
Dec 31, 2023