SanDisk Corp (SNDK)
Return on total capital
| 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 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 694,262 | 626,916 | 303,912 | 548,083 | 893,840 | 1,058,220 | 1,058,220 | 1,124,227 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 7,322,430 | 7,263,900 | 7,212,360 | 7,041,840 | 7,032,640 | 5,782,620 | 6,719,030 | 6,363,730 |
| Return on total capital | 11.87% | 9.42% | 11.54% | 14.32% | 18.70% | 22.37% | 23.79% | 23.44% | 23.39% | 21.76% | 20.35% | 14.41% | 9.48% | 8.63% | 4.21% | 7.78% | 12.71% | 18.30% | 15.75% | 17.67% |
March 31, 2016 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $632,720K ÷ ($—K + $5,330,080K)
= 11.87%
SanDisk Corp's return on total capital has fluctuated over the period from June 30, 2011, to March 31, 2016. The company's return on total capital ranged from a high of 23.79% on September 30, 2014, to a low of 4.21% on September 30, 2012.
The return on total capital measures how effectively SanDisk is generating profits from the total capital employed in its operations. A higher return on total capital indicates efficient use of the company's capital to generate earnings.
From the provided data, we can observe that SanDisk's return on total capital showed a general upward trend from September 30, 2012, to September 30, 2014, reaching peak levels in the range of 23-24%. However, there was a slight decline in the return on total capital in the subsequent periods up to March 31, 2016.
Overall, an upward trend in the return on total capital suggests that SanDisk was able to generate higher returns from its total capital during this period, although some fluctuations were observed. It is important for investors and stakeholders to monitor this ratio to assess the company's efficiency in utilizing its capital resources for generating profits.