Sanmina Corporation (SANM)

Return on total capital

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	431,554	324,793	301,192	229,616	276,278
Long-term debt	US$ in thousands	312,327	329,237	311,572	329,249	346,971
Total stockholders’ equity	US$ in thousands	2,168,950	56,325	1,878,630	1,623,370	1,642,570
Return on total capital		17.39%	84.24%	13.75%	11.76%	13.89%

September 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $431,554K ÷ ($312,327K + $2,168,950K)
= 17.39%

The return on total capital for Sanmina Corp has shown a gradual increase over the past five years, reaching 18.42% as of September 30, 2023. This indicates that the company has been effectively generating profits in relation to the total capital employed in its operations. The consistent improvement in this ratio reflects positively on the company's ability to use its capital efficiently to generate profits. This trend suggests a strong financial performance and effective management of the company's resources. Overall, the increasing return on total capital is a positive indicator of Sanmina Corp's financial health and operational efficiency.