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.