Aecom Technology Corporation (ACM)
Return on total capital
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 324,284 | 313,677 | 417,343 | 706,997 | 621,048 | 637,584 | 623,884 | 610,563 | 656,682 | 629,600 | 524,600 | 483,000 | 435,500 | 381,500 | 447,900 | 454,500 | 452,500 | 396,100 | 441,400 | 476,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,247,300 | 2,212,330 | 2,454,760 | 2,594,340 | 2,555,630 | 2,476,650 | 2,451,010 | 2,531,440 | 2,510,670 | 2,712,470 | 2,708,040 | 2,822,970 | 2,908,200 | 3,292,560 | 3,744,890 | 3,531,500 | 3,673,000 | 3,690,580 | 4,303,000 | 4,199,940 |
| Return on total capital | 14.43% | 14.18% | 17.00% | 27.25% | 24.30% | 25.74% | 25.45% | 24.12% | 26.16% | 23.21% | 19.37% | 17.11% | 14.97% | 11.59% | 11.96% | 12.87% | 12.32% | 10.73% | 10.26% | 11.35% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $324,284K ÷ ($—K + $2,247,300K)
= 14.43%
The return on total capital for AECOM has fluctuated over the past eight quarters. In Q2 2023, the return on total capital was at its highest at 16.41%, indicating efficient use of both debt and equity in generating profits. This was followed by a slight decrease in Q1 2023 to 16.20%.
However, in the subsequent quarters, there was a downward trend in the return on total capital, with Q4 2023 showing a return of 11.61% and Q1 2024 at 11.30%. These lower returns could suggest potential challenges in effectively utilizing the company's total capital to generate profits.
Overall, while AECOM has shown periods of strong performance in terms of return on total capital, the recent fluctuations highlight the importance of ongoing monitoring and strategic management of capital resources to optimize profitability.
Peer comparison
Dec 31, 2023