Veeco Instruments Inc (VECO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 79,879 | -16,568 | 60,296 | 56,710 | 23,943 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 770,770 | 672,442 | 577,824 | 437,628 | 408,374 |
| Return on total capital | 10.36% | -2.46% | 10.44% | 12.96% | 5.86% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $79,879K ÷ ($—K + $770,770K)
= 10.36%
Veeco Instruments Inc's return on total capital has varied over the past five years. In 2020, the return on total capital was 5.86%, indicating the company generated approximately 5.86 cents of profit for every dollar of total capital employed.
By the end of 2021, the return on total capital improved significantly to 12.96%, suggesting a more efficient utilization of capital and a higher profitability level.
However, in 2022, the return on total capital declined to 10.44%, though remaining above the 2020 level, indicating a slight decrease in capital efficiency compared to the previous year.
Unfortunately, by the end of 2023, the return on total capital turned negative at -2.46%, indicating that the company was not generating sufficient profits to cover the total capital employed, potentially raising concerns about the company's profitability and capital management.
In 2024, Veeco Instruments Inc managed to improve its return on total capital to 10.36%, which was a positive sign compared to the negative return in the previous year. This improvement suggests that the company may have made some adjustments to enhance profitability and capital efficiency.
Overall, the trend in Veeco Instruments Inc's return on total capital shows fluctuations over the years, signifying the company's varying effectiveness in generating profits relative to the total capital employed.
Peer comparison
Dec 31, 2024