Semtech Corporation (SMTC)
Return on total capital
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -943,764 | -379,463 | -329,721 | 34,425 | 93,062 | 191,685 | 191,740 | 164,363 | 145,017 | 121,003 | 105,061 | 87,157 | 74,956 | 66,202 | 62,597 | 55,610 | 52,009 | 68,980 | 95,887 | 119,339 |
| Long-term debt | US$ in thousands | 1,371,040 | 1,373,620 | 1,330,610 | 1,336,640 | 1,296,970 | 455,113 | 171,917 | 181,797 | 171,676 | 175,556 | 175,436 | 175,316 | 179,195 | 183,075 | 186,955 | 190,840 | 194,743 | 179,111 | 183,692 | 188,270 |
| Total stockholders’ equity | US$ in thousands | -307,434 | 334,261 | 366,835 | 733,028 | 755,852 | 792,412 | 798,858 | 734,983 | 737,584 | 718,194 | 708,417 | 704,277 | 698,743 | 676,391 | 677,493 | 661,474 | 676,954 | 688,721 | 689,540 | 695,226 |
| Return on total capital | -88.73% | -22.22% | -19.42% | 1.66% | 4.53% | 15.37% | 19.75% | 17.93% | 15.95% | 13.54% | 11.89% | 9.91% | 8.54% | 7.70% | 7.24% | 6.52% | 5.97% | 7.95% | 10.98% | 13.51% |
January 28, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-943,764K ÷ ($1,371,040K + $-307,434K)
= -88.73%
Semtech Corporation's return on total capital has exhibited fluctuations over the past few quarters. The return on total capital was notably negative (-88.73%) as of January 28, 2024. Prior to this, there was a significant decline in the return on total capital in the preceding quarter, which stood at -22.22% as of October 29, 2023.
Despite the negative trends, there was a slight improvement in the return on total capital from the previous quarter to the quarter ending April 30, 2023, where it was reported at 1.66%. This trend continued into the next quarter as of January 29, 2023, with a return of 4.53%.
The most favorable return on total capital during this period was observed on July 31, 2022, when it reached 19.75%, followed by a slightly lower return on total capital of 17.93% as of May 1, 2022.
Overall, the return on total capital for Semtech Corporation has shown variability with periods of both positive and negative returns. Investors and stakeholders may want to closely monitor future financial performance to assess the company's ability to generate returns on its total capital effectively.
Peer comparison
Jan 28, 2024