Amentum Holdings Inc. (AMTM)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 315,000 | — | 57,000 | 89,132 | 335,000 |
| Long-term debt | US$ in thousands | — | 4,643,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,460,000 | 4,460,000 | 374,239 | 3,259,000 | — |
| Return on total capital | 7.06% | 0.00% | 15.23% | 2.73% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $315,000K ÷ ($—K + $4,460,000K)
= 7.06%
Amentum Holdings Inc.'s return on total capital has displayed significant fluctuations over the years based on the data provided. As of December 31, 2021, the return on total capital was not available (indicated as "—"), suggesting potential issues in generating profits relative to the capital employed during that period. However, there was a notable improvement in performance by December 31, 2022, with a return on total capital of 2.73%.
The company's return on total capital experienced a substantial increase by December 31, 2023, reaching 15.23%, indicating a more efficient utilization of capital to generate profits. However, the performance dipped significantly by September 30, 2024, with a return on total capital of 0.00%, reflecting potential challenges or changes in the company's operations during that time frame.
Nonetheless, there was a moderate recovery by December 31, 2024, with the return on total capital increasing to 7.06%. Overall, the fluctuating trend in Amentum Holdings Inc.'s return on total capital suggests varying levels of effectiveness in deploying capital to generate returns over the analyzed periods. Further analysis of the company's financial health and operational strategies may be required to understand the drivers behind these fluctuations and identify areas for improvement.
Peer comparison
Dec 31, 2024