Qorvo Inc (QRVO)
Return on total capital
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -12,429 | 142,805 | 193,092 | 1,244,410 | 882,578 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,392,310 | 3,556,370 | 3,902,790 | 4,553,220 | 4,629,420 |
| Return on total capital | -0.37% | 4.02% | 4.95% | 27.33% | 19.06% |
March 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-12,429K ÷ ($—K + $3,392,310K)
= -0.37%
Qorvo Inc's return on total capital has shown fluctuating trends over the past five years. In March 31, 2021, the return on total capital stood at 19.06%, reflecting a solid performance. The ratio increased significantly to 27.33% by March 31, 2022, indicating improved efficiency in utilizing both debt and equity to generate profits.
However, there was a notable decline in performance as of March 31, 2023, with the return on total capital dropping to 4.95%. This decrease suggests potential challenges faced by the company in efficiently deploying its total capital to generate returns. The trend continued in the following year, with the ratio falling further to 4.02% by March 31, 2024, indicating a persistent struggle in optimizing capital allocation.
In the most recent period ending March 31, 2025, Qorvo Inc recorded a negative return on total capital of -0.37%. This result raises concerns about the company's ability to generate profits relative to the total capital employed, signaling potential inefficiencies in utilizing resources effectively.
Overall, the fluctuating trend in Qorvo Inc's return on total capital highlights the importance of closely monitoring and addressing factors impacting capital efficiency to sustain and improve financial performance in the future.
Peer comparison
Mar 31, 2025