Sandisk Corp (SNDK)

Return on total capital

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-1,408,000	-1,431,000	517,000	131,000	-728,000	-602,501	-471,116	-8,162	632,720	540,838	649,948	804,913	1,113,108	1,489,030	1,680,777	1,711,414	1,691,794	1,516,149	1,343,911	1,058,733
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	9,216,000	9,161,000	12,001,000	12,126,000	11,082,000	—	—	11,439,000	5,330,080	5,738,920	5,634,080	5,621,980	5,953,460	6,655,200	7,064,710	7,302,100	7,232,260	6,967,870	6,605,540	7,347,840
Return on total capital		-15.28%	-15.62%	4.31%	1.08%	-6.57%	—	—	-0.07%	11.87%	9.42%	11.54%	14.32%	18.70%	22.37%	23.79%	23.44%	23.39%	21.76%	20.35%	14.41%

June 30, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-1,408,000K ÷ ($—K + $9,216,000K)
= -15.28%

The analysis of Sandisk Corp's return on total capital (ROTC) over the relevant period reveals significant fluctuations and an overarching decline from mid-2013 through mid-2025. Initially, the company's ROTC demonstrated a strong upward trajectory, commencing at 14.41% on June 30, 2013, and peaking at 23.79% by September 30, 2014. This period reflects a phase of robust efficiency in generating returns relative to total capital employed, indicating effective operational and financial leverage during these years.

However, starting in late 2014 and continuing through 2015, the ROTC experienced a notable downward trend. By December 31, 2015, it had decreased to 9.42%, signaling a deterioration in the company's ability to convert total capital into earnings. The decline persisted in 2016, albeit at a more moderate level, with ROTC rising slightly to 11.87% on March 31 but then sharply declining into negative territory by September 30, 2023, at -0.07%. The negative ROTC values in subsequent periods, such as -6.57% on June 30, 2024 and -15.62% on March 31, 2025, indicate that the company's operations, on a total capital basis, have been generating losses, suggesting deteriorated operational effectiveness or adverse market conditions impacting profitability.

The recent data indicates periods of marginal recovery, with ROTC turning positive again to 4.31% on December 31, 2024, and modestly improving to 1.08% on September 30, 2024, before slipping back into negative territory. Overall, the trend demonstrates a significant erosion of long-term profitability relative to total capital, moving from historically strong returns to levels of negative or near-zero performance, reflecting potential challenges faced by the company's operational efficiency, market competitiveness, or financial leverage management in recent years.