Api Group Corp (APG)
Return on total capital
| Mar 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 463,000 | 563,000 | 448,000 | 427,000 | 408,000 | 384,000 | 416,000 | 367,000 | 327,000 | 255,000 | 195,000 | 165,000 | 142,000 | 139,000 | 82,000 | 92,000 | 72,000 | -160,000 | -289,000 | -317,333 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,982,000 | 2,953,000 | 2,967,000 | 2,835,000 | 2,301,000 | 2,868,000 | 2,232,000 | 3,044,000 | 2,165,000 | 2,127,000 | 2,947,000 | 2,953,000 | 3,075,000 | 2,323,000 | 2,297,000 | 1,828,000 | 1,791,000 | 1,558,000 | 1,598,000 | 1,565,000 |
| Return on total capital | 15.53% | 19.07% | 15.10% | 15.06% | 17.73% | 13.39% | 18.64% | 12.06% | 15.10% | 11.99% | 6.62% | 5.59% | 4.62% | 5.98% | 3.57% | 5.03% | 4.02% | -10.27% | -18.09% | -20.28% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $463,000K ÷ ($—K + $2,982,000K)
= 15.53%
The analysis of Api Group Corp’s return on total capital (ROTC) over the specified period reveals a pronounced turnaround from negative to positive profitability. Initially, during mid-2020, the company reported a significantly negative ROTC, with values of -20.28% as of June 30, 2020, and -18.09% as of September 30, 2020. This indicates that the company was experiencing substantial challenges in generating returns relative to its total capital during this period.
Subsequently, a gradual improvement was observed, culminating in a positive ROTC of 4.02% by March 31, 2021, and reaching 5.98% by December 31, 2021. This indicates a shift toward more effective utilization of capital to generate earnings, reflecting potentially improved operational efficiency, profitability, or both.
From 2022 onward, the ROTC continued to demonstrate upward momentum, peaking at 18.64% for the quarter ending September 30, 2023. Notably, there was consistent growth during this period, with the measure rising from 11.99% at the end of 2022 to levels well above 15% in 2023, suggesting a robust enhancement in capital productivity and profitability.
Throughout this timeframe, some fluctuations were observed; for example, after reaching a high of 18.64% in September 2023, the ROTC declined slightly to 13.39% at the end of December 2023 before rising again to 17.73% in March 2024. In subsequent quarters, the ROTC stabilized around 15%, with values of 15.10% and 15.06% in September and June 2024, respectively, before increasing to 19.07% at the end of 2024. By March 2025, the ROTC was recorded at 15.53%.
Overall, the data indicates a significant recovery and sustained improvement in Api Group Corp’s efficiency in generating returns on its total capital over the analyzed period. The initial losses have been largely offset by consistent profitability gains, with the company demonstrating strong capital management and operational performance in recent periods.
Peer comparison
Mar 31, 2025