Vishay Intertechnology Inc (VSH)
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 | 25,091 | 486,144 | 610,634 | 452,148 | 199,952 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,028,960 | 2,196,080 | 2,046,250 | 1,743,750 | 1,576,380 |
| Return on total capital | 1.24% | 22.14% | 29.84% | 25.93% | 12.68% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $25,091K ÷ ($—K + $2,028,960K)
= 1.24%
The return on total capital for Vishay Intertechnology Inc has shown a varying trend over the past five years. Starting at 12.68% on December 31, 2020, it increased significantly to 25.93% by December 31, 2021, indicating improved efficiency in generating returns from the total capital employed. This positive trend continued, reaching 29.84% by December 31, 2022, reflecting strong performance in utilizing both equity and debt to generate profits.
However, there was a slight decline in the return on total capital to 22.14% by December 31, 2023, which may suggest some challenges or changes in the company's operations impacting its overall profitability. The most significant drop was observed by December 31, 2024, with the return on total capital plummeting to 1.24%, raising concerns about the company's ability to effectively utilize its total capital to generate returns.
Overall, the company's return on total capital has fluctuated, with periods of significant growth followed by declines. It will be essential for Vishay Intertechnology Inc to assess the factors contributing to these fluctuations and implement strategies to sustain or improve its return on total capital for long-term financial health and performance.
Peer comparison
Dec 31, 2024