Vicor Corporation (VICR)
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 | -1,310 | 51,358 | 27,201 | 55,602 | 17,368 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 570,071 | 540,869 | 464,088 | 423,599 | 350,820 |
| Return on total capital | -0.23% | 9.50% | 5.86% | 13.13% | 4.95% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,310K ÷ ($—K + $570,071K)
= -0.23%
The return on total capital for Vicor Corporation has shown fluctuating trends over the past five years. In December 2020, the return on total capital was 4.95%, indicating the company's ability to generate profit relative to the total capital employed.
By December 2021, there was a significant improvement in the return on total capital, reaching 13.13%, reflecting a more efficient utilization of capital to generate returns. However, in December 2022, there was a decline to 5.86%, suggesting potential challenges in maintaining profitability.
The return on total capital increased again in December 2023 to 9.50%, indicating some level of recovery and improved capital efficiency. However, by December 2024, the return on total capital showed a negative value of -0.23%, indicating a period of underperformance relative to the capital employed.
Overall, the fluctuating trend in the return on total capital for Vicor Corporation over the past five years suggests varying levels of capital efficiency and profitability, with periods of improvement and decline. It is important for the company to closely monitor and address factors impacting its return on total capital to ensure sustainable and profitable operations.
Peer comparison
Dec 31, 2024