Amphenol Corporation (APH)
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 | 3,156,900 | 2,576,800 | 2,581,300 | 2,115,400 | 1,632,100 |
| Long-term debt | US$ in thousands | 6,259,300 | 3,742,600 | 4,182,300 | 5,005,800 | 4,031,200 |
| Total stockholders’ equity | US$ in thousands | 9,792,000 | 8,346,500 | 7,015,600 | 6,302,000 | 5,384,900 |
| Return on total capital | 19.67% | 21.32% | 23.05% | 18.71% | 17.33% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,156,900K ÷ ($6,259,300K + $9,792,000K)
= 19.67%
The return on total capital for Amphenol Corporation has been on an upward trend over the past five years, starting at 17.33% as of December 31, 2020, and reaching a peak of 23.05% as of December 31, 2022. This indicates that the company has been effectively utilizing its total capital to generate profits. However, there was a slight decrease in the return on total capital to 19.67% as of December 31, 2024.
Overall, the company's ability to generate returns on its total capital has shown fluctuations but remains relatively strong, showcasing efficient capital allocation and operational performance. It is important for investors and stakeholders to monitor this metric to assess the company's financial health and profitability.