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.