Api Group Corp (APG)
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 | 476,000 | 377,000 | 228,000 | 136,000 | -132,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,953,000 | 2,868,000 | 2,127,000 | 2,323,000 | 1,558,000 |
| Return on total capital | 16.12% | 13.15% | 10.72% | 5.85% | -8.47% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $476,000K ÷ ($—K + $2,953,000K)
= 16.12%
The analysis of Api Group Corp's return on total capital over the period from December 31, 2020, to December 31, 2024, indicates a significant positive trajectory following an initial negative value. At the end of 2020, the return on total capital was recorded at -8.47%, reflecting the company's challenges or inefficiencies in generating profits relative to its total capital base.
In 2021, this metric improved markedly, reaching a positive 5.85%, signaling a turnaround and enhanced efficiency in capital utilization. The upward trend continued into 2022, with the return increasing to 10.72%, which suggests that the company continued to improve its ability to generate earnings from its total capital resources.
The positive momentum persisted into 2023, with the return rising further to 13.15%. This growth indicates ongoing improvements in operational performance and effective capital management. In 2024, the return on total capital increased again to 16.12%, further reinforcing this positive trend.
Overall, the progression from a negative to a double-digit positive return demonstrates a strong recovery and consistent enhancement in the company's capacity to generate earnings relative to its total capital base over this period. This trend reflects well on the company's operational performance, strategic management, and potential improvements in profitability.
Peer comparison
Dec 31, 2024