Alcoa Corp (AA)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 467,000 | -126,000 | -538,000 | -729,000 | -584,000 | -747,000 | -1,248,000 | -241,000 | 702,000 | 871,000 | 2,097,000 | 1,650,000 | 1,199,000 | 1,307,000 | 832,000 | 266,000 | 173,000 | -134,000 | -208,000 | -280,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,159,000 | 5,250,000 | 3,899,000 | 3,994,000 | 4,251,000 | 4,509,000 | 4,842,000 | 4,690,000 | 5,076,000 | 5,371,000 | 5,666,000 | 4,579,000 | 4,638,000 | 3,878,000 | 3,769,000 | 3,248,000 | 3,287,000 | 3,395,000 | 3,705,000 | 4,275,000 |
| Return on total capital | 9.05% | -2.40% | -13.80% | -18.25% | -13.74% | -16.57% | -25.77% | -5.14% | 13.83% | 16.22% | 37.01% | 36.03% | 25.85% | 33.70% | 22.07% | 8.19% | 5.26% | -3.95% | -5.61% | -6.55% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $467,000K ÷ ($—K + $5,159,000K)
= 9.05%
The return on total capital of Alcoa Corp has shown significant fluctuations over the period from March 31, 2020, to December 31, 2024.
The company experienced negative returns on total capital in the initial quarters of the analyzed period, with values ranging from -6.55% to -3.95%. However, there was a notable turnaround starting from December 31, 2020, when the return on total capital turned positive at 5.26%.
From that point onwards, Alcoa's return on total capital showed an increasing trend, reaching a peak of 37.01% on June 30, 2022. This period of strong performance was followed by a slight decrease in returns before the metric declined significantly in the latter half of 2023 and the first half of 2024. The return on total capital fell to negative values again, hitting its lowest point of -25.77% on June 30, 2023.
In the subsequent quarters, Alcoa managed to improve its return on total capital, posting positive figures once more. By December 31, 2024, the return on total capital had recovered to 9.05%, showcasing the company's ability to adapt and navigate changing market conditions.
Overall, the return on total capital for Alcoa Corp demonstrates volatility but also resilience, with periods of both strong growth and challenging performance throughout the analyzed timeframe.
Peer comparison
Dec 31, 2024