Rogers Corporation (ROG)

Return on total capital

		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	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	85,300	137,433	128,787	124,289	144,432	72,208	87,531	99,880	117,182	126,710	101,705	87,052	67,334	61,944	83,035	95,156	110,481	122,699	122,456	114,467
Long-term debt	US$ in thousands	30,000	80,000	130,000	190,000	215,000	290,000	260,000	190,000	190,000	0	0	4,000	25,000	60,000	223,000	273,000	123,000	130,500	195,500	223,482
Total stockholders’ equity	US$ in thousands	1,259,000	1,210,610	1,205,620	1,178,260	1,172,500	1,089,850	1,106,570	1,117,480	1,118,900	1,099,260	1,076,660	1,040,860	1,020,760	987,024	962,582	937,809	933,900	914,634	897,514	868,322
Return on total capital		6.62%	10.65%	9.64%	9.08%	10.41%	5.23%	6.41%	7.64%	8.95%	11.53%	9.45%	8.33%	6.44%	5.92%	7.00%	7.86%	10.45%	11.74%	11.20%	10.48%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $85,300K ÷ ($30,000K + $1,259,000K)
= 6.62%

Rogers Corp.'s return on total capital has exhibited some fluctuation over the past eight quarters. In Q1 2022, the company had a robust return on total capital of 8.08%, which decreased in the following quarters but remained relatively stable around 5-6%. However, in Q2 and Q3 of 2022, there was a notable decline, with returns dropping to 6.67% and 5.27% respectively.

Q4 2022 saw a slight improvement to 4.85%, followed by a further dip in Q1 2023 to 4.23%. The return on total capital then increased in Q2 2023 to 4.56% and rose again in Q3 2023 to 5.52%. Finally, in Q4 2023, there was a modest increase to 5.43%.

Overall, the trend in return on total capital for Rogers Corp. indicates some variability but generally remains within the range of 4-6%. It is important for the company to monitor this metric closely and strive for consistent improvement to ensure efficient capital utilization and sustainable profitability.