Amentum Holdings Inc. (AMTM)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||
|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 54,000 | 184,000 | 361,000 | 364,000 | 344,000 | 328,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,475,000 | 4,460,000 | 3,208,000 | 3,315,000 | 3,353,000 | 375,000 |
| Return on total capital | 1.21% | 4.13% | 11.25% | 10.98% | 10.26% | 87.47% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $54,000K ÷ ($—K + $4,475,000K)
= 1.21%
Amentum Holdings Inc.'s return on total capital has displayed significant fluctuations over the analyzed period. As of September 30, 2023, the return on total capital stood at an impressive 87.47%, indicating that the company generated substantial profits relative to its total capital investment. However, this figure decreased significantly by December 31, 2023, to 10.26%, suggesting a sharp decline in profitability and capital efficiency.
Subsequently, the return on total capital gradually increased to 10.98% by March 31, 2024, and further improved to 11.25% by June 30, 2024. These increments may indicate enhanced operational performance and better utilization of capital resources during these periods.
However, the trend reversed by September 30, 2024, when the return on total capital dropped notably to 4.13%, signifying a decrease in profitability and a potential inefficiency in deploying capital. This decline continued into the following quarter, with the return on total capital plummeting to 1.21% by December 31, 2024, marking the lowest point in the analyzed period.
Overall, the fluctuating pattern of Amentum Holdings Inc.'s return on total capital highlights the company's varying levels of profitability and capital utilization efficiency throughout the period, indicating the need for further examination of operational strategies and financial management practices.
Peer comparison
Dec 31, 2024