Autoliv Inc (ALV)

Return on total capital

Dec 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 986,000 882,000 882,000 777,000 705,000 694,000 639,000 661,000 666,000 605,000 537,000 574,000 674,000 799,600 897,800 499,000 393,200 322,200 274,500 673,600
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total stockholders’ equity US$ in thousands 2,276,000 2,288,000 2,299,000 2,428,000 2,557,000 2,473,000 2,545,000 2,627,000 2,613,000 2,478,000 2,544,000 2,659,000 2,633,000 2,558,000 2,600,000 2,507,000 2,408,900 2,099,800 1,941,500 2,031,000
Return on total capital 43.32% 38.55% 38.36% 32.00% 27.57% 28.06% 25.11% 25.16% 25.49% 24.41% 21.11% 21.59% 25.60% 31.26% 34.53% 19.90% 16.32% 15.34% 14.14% 33.17%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $986,000K ÷ ($—K + $2,276,000K)
= 43.32%

Autoliv Inc's return on total capital has shown fluctuations over the quarters, ranging from 14.14% to 43.32% as of December 31, 2024. The return on total capital was relatively low in the second quarter of 2020 but gradually increased in the following quarters, reaching a peak in the fourth quarter of 2024. This indicates that Autoliv Inc has been efficiently utilizing its total capital to generate profits for its stakeholders. The company's ability to maintain a high return on total capital suggests effective management of both debt and equity investments to create value for its investors.