Qorvo Inc (QRVO)

Return on total capital

		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	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	142,762	-85,809	-45,261	61,919	193,135	639,768	924,019	1,027,316	1,244,424	1,281,759	1,224,186	1,080,634	882,600	663,974	623,096	514,291	455,481	432,487	312,847	240,613
Long-term debt	US$ in thousands	—	1,550,440	2,048,580	2,048,260	2,048,070	2,047,740	2,047,400	2,047,180	2,047,100	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	4,292,660	4,339,380	4,265,490	4,337,340
Return on total capital		4.01%	-1.65%	-0.77%	1.06%	3.25%	10.30%	14.51%	16.18%	18.85%	27.46%	25.89%	23.25%	19.07%	14.74%	14.14%	11.82%	10.61%	9.97%	7.33%	5.55%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $142,762K ÷ ($—K + $3,556,370K)
= 4.01%

Qorvo Inc's return on total capital has shown fluctuations over the past several quarters. The return on total capital ranged from a low of -1.65% in December 2023 to a high of 27.46% in March 2022. The recent return on total capital as of March 31, 2024, stands at 4.01%. This indicates that the company generated a return of 4.01% on the capital invested in the business during the first quarter of 2024.

It is important to note that a positive return on total capital indicates the company is effectively utilizing its capital to generate profits, while a negative return suggests inefficiency in capital deployment. Qorvo Inc's return on total capital has experienced some volatility, but the overall trend shows a general decline from the peak in March 2022.

Further analysis of the factors influencing the return on total capital, such as profitability, asset efficiency, and capital structure, would be necessary to fully understand the drivers behind the fluctuations in this ratio.