Qorvo Inc (QRVO)

Return on total capital

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	142,805	193,092	1,244,410	882,578	455,481
Long-term debt	US$ in thousands	—	2,048,070	2,047,100	—	—
Total stockholders’ equity	US$ in thousands	3,556,370	3,902,790	4,553,220	4,629,420	4,292,660
Return on total capital		4.02%	3.24%	18.85%	19.06%	10.61%

March 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $142,805K ÷ ($—K + $3,556,370K)
= 4.02%

Qorvo Inc's return on total capital has varied over the past five years, ranging from 4.02% to 19.06%. The return on total capital was relatively low in 2023 and 2024 compared to the two preceding years, indicating potentially lower efficiency in generating returns on the total capital employed by the company. However, it is worth noting that the return on total capital significantly improved in 2022 compared to the previous year, reaching 18.85%. This improvement suggests that the company effectively utilized its total capital during that period to generate profits. Overall, the company's return on total capital has shown some fluctuations, and it is important for stakeholders to monitor this metric to evaluate the company's capital efficiency and profitability over time.