Adient PLC (ADNT)

Return on total capital

		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	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	250,000	258,000	332,000	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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,134,000	1,927,000	2,075,000	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
Return on total capital		11.72%	13.39%	16.00%	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%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $250,000K ÷ ($—K + $2,134,000K)
= 11.72%

The return on total capital for Adient PLC has fluctuated over the past several quarters. The ratio ranged from negative values in Q4 2019 and Q1 2020 to high positive values in Q2 and Q3 of 2022. Despite the variability, the trend has shown an overall improvement from negative territory to positive returns, with some exceptional high returns in the middle of the observed period. The recent return on total capital of 11.72% in September 2024 indicates a positive return on the company's total capital employed during that period. This suggests that Adient PLC has been generating a reasonable return on its total capital, although the fluctuations in the ratio signify that further monitoring and analysis of the company's financial performance are warranted to better understand the underlying factors driving these changes.