Autoliv Inc (ALV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 983,000 | 705,000 | 663,000 | 674,000 | 364,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,276,000 | 2,557,000 | 2,613,000 | 2,633,000 | 2,408,900 |
| Return on total capital | 43.19% | 27.57% | 25.37% | 25.60% | 15.12% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $983,000K ÷ ($—K + $2,276,000K)
= 43.19%
Autoliv Inc's return on total capital has exhibited a positive trend over the five-year period from 2020 to 2024. The ratio increased steadily from 15.12% in 2020 to 43.19% in 2024, indicating a significant improvement in the company's ability to generate returns from its total capital employed. This upward trajectory suggests that Autoliv Inc has been effectively utilizing its capital to generate profits and create value for its stakeholders. The substantial increase in the return on total capital demonstrates the company's strong operational performance and efficiency in deploying its resources to generate higher returns over time. Overall, the improving trend in Autoliv Inc's return on total capital reflects positively on the company's financial health and management effectiveness in maximizing returns for its investors.
Peer comparison
Dec 31, 2024