Semtech Corporation (SMTC)
Return on total capital
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -80,946 | -731,270 | -1,369,015 | -1,241,787 | -1,259,931 | -938,590 | -618,739 | -624,682 | -663,975 | -420,851 | -82,627 | -31,841 | 84,416 | 187,390 | 196,365 | 201,621 | 179,994 | 170,892 | 160,462 | 154,042 |
| Long-term debt | US$ in thousands | — | — | — | — | — | 1,371,040 | — | 1,373,620 | — | 1,330,610 | — | — | 1,296,970 | — | 455,113 | — | 181,797 | — | — | 171,676 |
| Total stockholders’ equity | US$ in thousands | 542,400 | -46,791 | -141,437 | -313,098 | -307,434 | -307,434 | 334,261 | 334,261 | 366,835 | 366,835 | 733,028 | 755,852 | 755,852 | 792,412 | 792,412 | 798,858 | 734,983 | 734,983 | 737,584 | 737,584 |
| Return on total capital | -14.92% | — | — | — | — | -88.25% | -185.11% | -36.58% | -181.00% | -24.79% | -11.27% | -4.21% | 4.11% | 23.65% | 15.74% | 25.24% | 19.63% | 23.25% | 21.76% | 16.94% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-80,946K ÷ ($—K + $542,400K)
= -14.92%
The return on total capital for Semtech Corporation has shown fluctuations over the specified periods, ranging from positive to negative values. Initially, from January 30, 2022, to July 31, 2022, there was a consistent improvement in the return on total capital, with values increasing from 16.94% to 25.24%. Subsequently, there was a decline in this metric with values dropping to 15.74% by October 30, 2022. The return on total capital then recovered and peaked at 23.65% by October 31, 2022.
However, starting from January 29, 2023, the trend reversed with negative values reported for the return on total capital. The downward trend continued with significant declines recorded in subsequent periods, reaching a low of -185.11% by October 31, 2023. The return on total capital remained negative from January 28, 2024, onwards, indicating challenges in generating returns relative to the total capital invested in the business.
Overall, the return on total capital for Semtech Corporation has been volatile in recent periods, reflecting fluctuations in the company's financial performance and efficiency in utilizing its total capital resources to generate returns for investors and stakeholders.
Peer comparison
Jan 31, 2025