Seagate Technology PLC (STX)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 777,000 | -183,000 | 1,928,000 | 1,568,000 | 1,233,000 |
| Long-term debt | US$ in thousands | 5,195,000 | 5,388,000 | 5,062,000 | 4,894,000 | 4,156,000 |
| Total stockholders’ equity | US$ in thousands | -1,491,000 | -1,199,000 | 109,000 | 631,000 | 1,787,000 |
| Return on total capital | 20.98% | -4.37% | 37.28% | 28.38% | 20.75% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $777,000K ÷ ($5,195,000K + $-1,491,000K)
= 20.98%
Seagate Technology PLC's return on total capital has displayed fluctuating trends over the past five years. In 2024, the return on total capital stood at a healthy 20.98%, indicating that the company generated a return of approximately 21% on its total invested capital during that period. This marks a significant improvement compared to the previous year's negative return of -4.37%, which implies the company incurred a loss on its total capital investment.
The return on total capital for 2022 was an impressive 37.28%, signifying a substantial increase in the efficiency of capital utilization compared to the preceding year. The company maintained a strong performance in 2021, with a return on total capital of 28.38%, demonstrating continued effectiveness in generating returns from its total capital base.
In 2020, Seagate Technology PLC achieved a return on total capital of 20.75%, indicating a stable performance in efficiently utilizing its capital resources to generate returns. It is evident that the company's ability to generate returns on its total capital has varied over the last five years, reflecting the dynamic nature of its operations and market conditions.
Overall, Seagate Technology PLC's return on total capital has shown fluctuations over the period under review, with notable improvements in certain years and challenges in others. Continuous monitoring and analysis of this ratio will be essential for stakeholders to assess the company's performance in efficiently deploying its capital to generate returns.
Peer comparison
Jun 30, 2024