Seagate Technology PLC (STX)
Return on total capital
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 777,000 | 156,000 | -303,000 | -344,000 | -183,000 | 164,000 | 897,000 | 1,434,000 | 1,928,000 | 2,138,000 | 2,122,000 | 1,889,000 | 1,568,000 | 1,221,000 | 1,210,000 | 1,251,000 | 1,233,000 | 1,370,000 | 1,253,000 | 1,323,000 |
| Long-term debt | US$ in thousands | 5,195,000 | 5,192,000 | 5,669,000 | 5,666,000 | 5,388,000 | 4,840,000 | 5,393,000 | 5,613,000 | 5,062,000 | 5,614,000 | 5,626,000 | 4,891,000 | 4,894,000 | 4,897,000 | 5,120,000 | 4,138,000 | 4,156,000 | 4,091,000 | 4,135,000 | 4,140,000 |
| Total stockholders’ equity | US$ in thousands | -1,491,000 | -1,889,000 | -1,814,000 | -1,702,000 | -1,199,000 | -1,004,000 | -470,000 | -351,000 | 109,000 | 421,000 | 526,000 | 601,000 | 631,000 | 484,000 | 990,000 | 1,821,000 | 1,787,000 | 1,792,000 | 1,830,000 | 1,770,000 |
| Return on total capital | 20.98% | 4.72% | -7.86% | -8.68% | -4.37% | 4.28% | 18.22% | 27.25% | 37.28% | 35.43% | 34.49% | 34.40% | 28.38% | 22.69% | 19.80% | 20.99% | 20.75% | 23.29% | 21.01% | 22.39% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 demonstrated variability over the past several quarters. The ratio fluctuated between negative and positive values, indicating inconsistency in the company's ability to generate returns from its total invested capital.
In the most recent quarter, ending June 30, 2024, the return on total capital stood at 20.98%, reflecting a significant improvement compared to the previous quarter. This suggests that Seagate was able to generate a higher return on the total funds invested in the business during this period.
Looking back over the last few quarters, the return on total capital reached its peak at 37.28% in the quarter ending June 30, 2022, indicating strong efficiency in capital utilization during that period. However, there were also periods of lower returns, with negative figures recorded in some quarters, such as in the quarters ending Sep 30, 2023, and Dec 31, 2023.
Overall, Seagate Technology PLC's return on total capital has shown volatility, with fluctuations in performance impacting the company's ability to effectively generate returns for its capital providers. It will be important for the company to sustain and improve its return on total capital in order to enhance long-term shareholder value.
Peer comparison
Jun 30, 2024