Adient PLC (ADNT)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 337,000 | 166,000 | 1,586,000 | -287,000 | 56,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,228,000 | 2,073,000 | 2,376,000 | 1,213,000 | 1,848,000 |
| Return on total capital | 15.13% | 8.01% | 66.75% | -23.66% | 3.03% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $337,000K ÷ ($—K + $2,228,000K)
= 15.13%
The return on total capital for Adient plc has shown fluctuation over the past five years. In Sep 2023, the return on total capital increased to 11.82% from 6.11% in Sep 2022, indicating improved efficiency in generating returns from the total capital employed. This suggests that the company was able to generate higher returns relative to the total capital invested. However, it is noteworthy that the return on total capital was substantially higher in Sep 2021 at 29.20%, indicating a significant decline in 2023. The return on total capital was relatively low in Sep 2020 at 1.01%, which improved in the following years. Overall, the return on total capital has shown variability, and it would be important to further investigate the factors influencing these fluctuations, considering the changes in the company's financial structure and operational efficiency over the years.
Peer comparison
Sep 30, 2023