Sanmina Corporation (SANM)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 335,494 | 431,554 | 324,793 | 301,192 | 229,616 |
| Long-term debt | US$ in thousands | 299,823 | 312,327 | 329,237 | 311,572 | 329,249 |
| Total stockholders’ equity | US$ in thousands | 2,196,620 | 2,168,950 | 56,325 | 1,878,630 | 1,623,370 |
| Return on total capital | 13.44% | 17.39% | 84.24% | 13.75% | 11.76% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $335,494K ÷ ($299,823K + $2,196,620K)
= 13.44%
Sanmina Corporation's return on total capital has exhibited variability over the past five years. In 2022, the return on total capital was significantly high at 84.24%, indicating efficient utilization of both debt and equity in generating profits. However, there was a notable decline in this metric in the following years, with values of 13.75% in 2021, 11.76% in 2020, and further down to 13.44% by the end of 2024. This suggests a potential decrease in the company's ability to generate profits in comparison to the invested capital. It is essential for stakeholders to assess the factors driving this fluctuation to ensure sustainable performance and optimal capital allocation strategies going forward.
Peer comparison
Sep 30, 2024