Sandisk Corp (SNDK)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | -444,000 | -1,295,000 | 1,216,000 | 544,576 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,216,000 | 11,082,000 | 11,439,000 | 12,977,000 | 5,738,920 |
| Return on total capital | 0.00% | -4.01% | -11.32% | 9.37% | 9.49% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $9,216,000K)
= 0.00%
The analysis of Sandisk Corp’s return on total capital over the specified period reveals notable fluctuations that reflect changes in the company's operational efficiency and overall financial health. As of December 31, 2015, the return on total capital stood at 9.49%, indicating a relatively healthy level of profitability derived from the company's total capital base at that time. This suggests effective utilization of the company's capital resources to generate earnings.
By June 30, 2022, the return slightly declined to 9.37%, which points to a relatively stable performance over this period, with minimal erosion in profitability margins despite potential market or operational shifts. The stability during this period might suggest consistent operational efficiency or steady market conditions.
However, a significant negative shift is observed by June 30, 2023, when the return on total capital drops to -11.32%. This indicates a substantial decline in profitability, likely attributable to increased costs, decreased revenues, or possibly impairments impacting the company's earnings relative to its total capital. The negative figure underscores a period of financial distress or operational challenges.
The downward trend continues into June 30, 2024, with the return declining further to -4.01%, indicating ongoing challenges but with some improvement compared to the previous year. This partial recovery suggests that the company may have implemented corrective measures but has yet to restore positive profitability on a total capital basis.
Finally, by June 30, 2025, the return on total capital reaches 0.00%, signifying a breakeven point where the company's earnings generated from its total capital are neutral. This milestone may reflect strategic adjustment efforts, cost controls, or revenue stabilization, although it underscores that the company remains at a critical juncture in restoring profitability.
Overall, the trend demonstrates a considerable deviation from previous levels of profitability, with a historical peak in 2015 and 2016, followed by a sharp decline into negative territory, and a tentative move toward breakeven in recent periods. This pattern suggests that the company experienced operational or market difficulties post-2022, with signs of potential stabilization emerging as of mid-2025.
Peer comparison
Jun 30, 2025