Vishay Intertechnology Inc (VSH)
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 | 490,840 | 608,961 | 451,181 | 189,023 | 259,127 |
| Long-term debt | US$ in thousands | 818,188 | 500,937 | 455,666 | 394,886 | 499,147 |
| Total stockholders’ equity | US$ in thousands | 2,196,080 | 2,046,250 | 1,743,750 | 1,576,220 | 1,485,150 |
| Return on total capital | 16.28% | 23.91% | 20.51% | 9.59% | 13.06% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $490,840K ÷ ($818,188K + $2,196,080K)
= 16.28%
Vishay Intertechnology, Inc.'s return on total capital has displayed some fluctuations over the past five years. The return on total capital decreased from 24.16% in 2022 to 16.13% in 2023. However, it remained relatively stable in the range of 10.68% to 21.27% between 2020 and 2022 before the recent decrease in 2023.
The return on total capital is a key metric used to evaluate a company's efficiency in generating profits from its total invested capital. A higher return on total capital signifies that the company is utilizing its capital effectively to generate profits for its investors. In the case of Vishay Intertechnology, the decreasing trend in the return on total capital in 2023 may indicate a potential decline in the efficiency of the company in generating returns for its invested capital.
Further analysis is recommended to understand the factors contributing to this decline and to assess the overall financial health and performance of Vishay Intertechnology, Inc.
Peer comparison
Dec 31, 2023