Autoliv Inc (ALV)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	704,000	661,000	672,000	363,000	718,000
Long-term debt	US$ in thousands	1,324,000	1,054,000	1,662,000	2,110,000	1,726,100
Total stockholders’ equity	US$ in thousands	2,557,000	2,613,000	2,633,000	2,409,000	2,109,200
Return on total capital		18.14%	18.03%	15.65%	8.03%	18.72%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $704,000K ÷ ($1,324,000K + $2,557,000K)
= 18.14%

The return on total capital for Autoliv Inc. has fluctuated over the past five years. In 2023, the return on total capital was 20.39%, showing a significant improvement compared to the previous year at 13.00%. This indicates that the company was able to generate a higher return on the total capital invested in the business during the year.

In 2022, the return on total capital was 13.00%, which was lower than in 2021 at 14.67%. The decrease may suggest a potential decrease in the company's efficiency in utilizing its total capital to generate profits.

In 2021, the return on total capital was 14.67%, which was higher than in 2020 at 9.84%. This improvement indicates that the company's ability to generate returns on the total capital employed in the business strengthened during that period.

In 2020, the return on total capital was 9.84%, showing an increase from 2019 at 18.33%. This decrease may indicate a temporary downturn in the company's efficiency in generating returns on the total capital invested.

In 2019, the return on total capital was 18.33%, demonstrating a strong performance in utilizing the total capital to generate profits. Overall, the fluctuation in the return on total capital for Autoliv Inc. over the past five years suggests varying levels of efficiency in utilizing the total capital employed in the business to generate returns.