SanDisk Corp (SNDK)
Return on total capital
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 544,576 | 1,504,010 | 1,519,630 | 626,916 | 1,457,430 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,738,920 | 6,528,060 | 6,967,870 | 7,263,900 | 7,064,360 |
| Return on total capital | 9.49% | 23.04% | 21.81% | 8.63% | 20.63% |
December 31, 2015 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $544,576K ÷ ($—K + $5,738,920K)
= 9.49%
SanDisk Corp's return on total capital has shown fluctuations over the years based on the provided data. The company's return on total capital was relatively high at 20.63% in December 31, 2011, indicating efficient utilization of both equity and debt in generating profits.
However, in December 31, 2012, the return on total capital decreased to 8.63%, reflecting a potential decline in the company's ability to generate profits from its invested capital during that period.
The company's performance improved in December 31, 2013, with a return on total capital of 21.81%, suggesting a better utilization of both equity and debt to drive profitability.
The trend continued positively in December 31, 2014, where SanDisk Corp achieved a return on total capital of 23.04%, indicating a further improvement in the company's efficiency in generating profits from its total capital base.
Nevertheless, the return on total capital decreased to 9.49% in December 31, 2015, which might suggest a potential decline in profitability relative to the previous year. Overall, SanDisk Corp's return on total capital has shown variability over the years, reflecting the company's capability to effectively deploy its capital resources to generate returns for its stakeholders.
Peer comparison
Dec 31, 2015