Sanmina Corporation (SANM)

Return on total capital

		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	Mar 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	338,464	340,266	361,459	396,663	427,939	421,123	402,400	362,984	328,415	311,337	329,060	305,510	301,192	319,307	284,814	249,795	229,411	204,976	203,429	263,864
Long-term debt	US$ in thousands	299,823	299,665	303,884	308,105	312,327	316,552	320,779	325,007	329,237	298,345	302,751	307,160	311,572	315,987	320,405	324,825	329,249	333,675	338,105	342,537
Total stockholders’ equity	US$ in thousands	2,196,620	68,988	69,533	67,539	2,168,950	65,882	2,217,990	63,275	56,325	1,768,560	1,805,040	1,852,760	1,878,630	1,839,120	1,735,110	1,677,950	1,623,370	1,653,480	1,617,750	1,679,380
Return on total capital		13.56%	92.30%	96.80%	105.60%	17.25%	110.12%	15.85%	93.48%	85.18%	15.06%	15.61%	14.14%	13.75%	14.82%	13.86%	12.47%	11.75%	10.32%	10.40%	13.05%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $338,464K ÷ ($299,823K + $2,196,620K)
= 13.56%

The return on total capital for Sanmina Corporation has fluctuated over the periods provided. In general, the company has shown variability in generating returns on the total capital employed in its operations. Notably, there are significant peaks in return on total capital in some quarters, such as in March 2024, where it reached 96.80% and in June 2023 with a return of 110.12%. These peaks indicate efficient capital utilization or possibly higher profitability during those periods.

However, there are also quarters where the return on total capital drops significantly, as seen in December 2020 with a return of 10.32% and September 2022 with a return of 10.40%. These lower returns may suggest challenges in effectively utilizing the company's total capital to generate profits during those specific periods.

It is essential for Sanmina Corporation to maintain a consistent and sustainable return on total capital to ensure the efficient allocation of resources and sustainable profitability in the long term. Further analysis of the company's financial performance and operational efficiency is needed to understand the factors driving the fluctuation in return on total capital.