Sanmina Corporation (SANM)

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	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	276,798	226,884	208,611
Long-term debt	US$ in thousands	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	346,971	351,472	0
Total stockholders’ equity	US$ in thousands	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	1,642,570	1,627,470	1,580,720
Return on total capital		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%	13.91%	11.46%	13.20%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $396,663K ÷ ($308,105K + $67,539K)
= 105.60%

The return on total capital for Sanmina Corporation has shown fluctuating trends over the recent quarters. The ratio peaked at 105.60% in December 2023, reflecting a strong performance in generating returns relative to the invested capital. Prior to that, there was a notable increase in the ratio in June 2023 at 110.12%. However, in March 2023, the return on total capital dipped to 15.85%, indicating a temporary decrease in the efficiency of capital utilization.

Overall, the company has demonstrated varying levels of efficiency in utilizing its total capital to generate returns, with periods of both high and low performance. Consistent monitoring and analysis of this ratio will be important to assess the company's ability to generate profits in relation to the total capital employed in its operations.