Adient PLC (ADNT)
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 | 408,000 | 371,000 | 423,000 | 300,000 | 228,000 | 173,000 | 1,192,000 | 1,159,000 | 1,330,000 | 1,586,000 | 411,000 | 153,000 | 38,000 | -287,000 | -284,000 | 56,000 | -36,000 | 57,000 | -1,002,000 | -1,000,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,285,000 | 2,228,000 | 2,174,000 | 2,197,000 | 2,192,000 | 2,073,000 | 2,123,000 | 2,285,000 | 2,344,000 | 2,376,000 | 1,467,000 | 1,489,000 | 1,452,000 | 1,213,000 | 1,250,000 | 1,541,000 | 1,743,000 | 1,848,000 | 1,919,000 | 2,257,000 |
| Return on total capital | 17.86% | 16.65% | 19.46% | 13.65% | 10.40% | 8.35% | 56.15% | 50.72% | 56.74% | 66.75% | 28.02% | 10.28% | 2.62% | -23.66% | -22.72% | 3.63% | -2.07% | 3.08% | -52.21% | -44.31% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $408,000K ÷ ($—K + $2,285,000K)
= 17.86%
The return on total capital for Adient plc has shown fluctuating performance over the past eight quarters. In Q1 2024, the return on total capital was 11.67%, slightly lower than Q4 2023 at 11.82%. The trend of a stable return continued from Q3 2023 to Q4 2023, both recording around 11.8%. However, a significant drop was observed in Q2 2023 where the return on total capital was only 8.96%, and a further decrease occurred in Q1 2023 to 7.47%.
The declining trend in return on total capital reversed during Q4 2022 and Q3 2022, with notable spikes in performance. In Q4 2022, the return on total capital was at 27.59%, which was significantly higher than the previous quarters. Q3 2022 also showed strong performance with a return on total capital of 25.72%.
Overall, the return on total capital for Adient plc has been volatile, with periods of high and low performances. It is important for the company to focus on maintaining a sustainable level of return on total capital to ensure efficient utilization of capital resources and sustainable profitability.
Peer comparison
Dec 31, 2023