Veeco Instruments Inc (VECO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -16,598 | 62,495 | 54,040 | 16,275 | -55,871 |
| Long-term debt | US$ in thousands | 274,941 | 254,491 | 229,438 | 321,115 | 300,068 |
| Total stockholders’ equity | US$ in thousands | 672,442 | 577,824 | 437,628 | 408,374 | 374,512 |
| Return on total capital | -1.75% | 7.51% | 8.10% | 2.23% | -8.28% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-16,598K ÷ ($274,941K + $672,442K)
= -1.75%
Veeco Instruments Inc's return on total capital has shown a fluctuating trend over the past five years. In 2023, the return on total capital was 7.38%, which was slightly higher compared to 2022 when it was 7.07%. This indicates a relatively stable performance in utilizing the company's total capital to generate profits.
In 2021, Veeco Instruments Inc witnessed a higher return on total capital of 8.50%, showcasing a more efficient use of its total capital. However, there was a significant drop in 2020 when the return on total capital was only 3.28%, suggesting a possible decrease in profitability compared to the previous year.
The most notable change occurred in 2019 when Veeco Instruments Inc reported a negative return on total capital of -4.33%. This indicates that the company's total capital was not effectively utilized to generate profits, resulting in a loss during that year.
Overall, Veeco Instruments Inc's return on total capital has exhibited variability over the past five years, with fluctuations in profitability levels. It is essential for the company to focus on consistently improving its return on total capital to ensure efficient utilization of its capital resources and maximize profitability.
Peer comparison
Dec 31, 2023