Qorvo Inc (QRVO)

Return on total capital

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	104,257	155,815	62,054	193,596	142,805	24,353	64,854	171,991	303,208	639,725	923,976	1,027,314	1,244,410	1,281,745	1,224,172	1,080,622	882,578	663,952	623,074	514,198
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	3,392,310	3,380,430	3,410,170	3,486,260	3,556,370	3,638,350	3,817,190	3,812,220	3,902,790	4,164,570	4,322,140	4,300,600	4,553,220	4,667,200	4,727,750	4,648,390	4,629,420	4,503,700	4,407,170	4,351,240
Return on total capital		3.07%	4.61%	1.82%	5.55%	4.02%	0.67%	1.70%	4.51%	7.77%	15.36%	21.38%	23.89%	27.33%	27.46%	25.89%	23.25%	19.06%	14.74%	14.14%	11.82%

March 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $104,257K ÷ ($—K + $3,392,310K)
= 3.07%

Qorvo Inc's return on total capital has displayed fluctuating trends over the past few years. The ratio started at 11.82% on June 30, 2020, and steadily increased, reaching its peak at 27.46% on December 31, 2021. However, from March 31, 2022, the return on total capital began to decline, dropping to 3.07% on March 31, 2025.

The data suggests that Qorvo Inc's ability to generate returns from the total capital employed has shown volatility, with periods of strong performance followed by decreases in returns. It is important for stakeholders to monitor this metric closely to understand the company's efficiency in utilizing its capital resources and its overall financial health.