Wolfspeed Inc (WOLF)

Return on total capital

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-649,100	-600,300	-595,900	-598,500	-286,000	-148,200	-124,300	-125,000	-166,800	-340,800	-380,500	-368,400	-477,400	-371,000	-329,400	-305,200	-163,000	-276,300	-434,800	-377,700
Long-term debt	US$ in thousands	6,161,100	5,664,300	5,167,600	5,159,400	4,175,100	3,023,300	3,021,000	1,300,800	1,021,600	1,008,400	453,900	834,400	823,900	813,700	803,500	793,600	783,800	486,300	480,500	474,700
Total stockholders’ equity	US$ in thousands	882,100	1,022,600	1,150,200	1,245,700	1,621,900	1,706,800	1,780,200	2,109,600	2,439,300	2,390,400	2,378,900	2,039,400	2,116,500	2,247,000	1,864,900	1,908,700	2,083,100	1,939,500	1,991,200	2,020,600
Return on total capital		-9.22%	-8.98%	-9.43%	-9.34%	-4.93%	-3.13%	-2.59%	-3.67%	-4.82%	-10.03%	-13.43%	-12.82%	-16.24%	-12.12%	-12.34%	-11.29%	-5.69%	-11.39%	-17.59%	-15.14%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-649,100K ÷ ($6,161,100K + $882,100K)
= -9.22%

Wolfspeed Inc's return on total capital has shown fluctuations over the past several quarters. The return on total capital has been negative in most periods, indicating that the company's operating profits were not sufficient to cover the total capital employed in its operations.

The return on total capital ranged from a low of -17.59% in the third quarter of 2019 to a high of -2.59% in the fourth quarter of 2022. The company experienced particularly poor performance in the fourth quarter of 2021 and the first quarter of 2022, with return on total capital falling to -13.43% and -16.24% respectively.

Overall, the trend in return on total capital for Wolfspeed Inc has been negative, with occasional fluctuations. Investors and stakeholders may be concerned about the company's ability to generate adequate returns on the capital invested in its operations. Monitoring changes in this ratio over time can provide insights into the company's financial performance and efficiency in utilizing its capital resources.