Vicor Corporation (VICR)
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 | 51,358 | 27,201 | 55,602 | 17,368 | 13,821 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 540,869 | 464,088 | 423,599 | 350,820 | 205,562 |
| Return on total capital | 9.50% | 5.86% | 13.13% | 4.95% | 6.72% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $51,358K ÷ ($—K + $540,869K)
= 9.50%
To analyze Vicor Corp.'s return on total capital over the past five years, we can observe a fluctuating trend. In 2023, the return on total capital increased to 9.50% from 7.26% in 2022. This improvement indicates that the company generated a higher return relative to its total invested capital.
Comparing 2023 to earlier years, we notice that the return on total capital was also better than in 2020 and 2019, when it was 4.95% and 6.72% respectively. However, it was lower than in 2021 when it reached 13.13%, which was the highest in the given period.
Overall, Vicor Corp.'s return on total capital has shown variability in performance over the past five years. The recent increase in 2023 suggests an improvement in utilizing its total capital effectively to generate profits, although the performance in 2021 remains the standout year in terms of return on total capital.
Peer comparison
Dec 31, 2023