Amphenol Corporation (APH)
Return on total capital
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,576,800 | 2,547,100 | 2,564,200 | 2,585,600 | 2,581,300 | 2,515,400 | 2,411,600 | 2,241,100 | 2,115,400 | 2,000,600 | 1,898,500 | 1,777,400 | 1,632,000 | 1,575,400 | 1,503,300 | 1,544,500 | 1,604,400 | 1,630,900 | 1,670,500 | 1,678,700 |
| Long-term debt | US$ in thousands | 3,742,600 | 3,517,300 | 3,608,800 | 4,250,300 | 4,182,300 | 4,312,100 | 4,545,800 | 4,827,600 | 5,005,800 | 5,224,500 | 5,004,000 | 4,362,100 | 4,031,200 | 3,940,700 | 4,049,200 | 4,607,400 | 3,379,400 | 3,697,700 | 3,725,500 | 3,657,200 |
| Total stockholders’ equity | US$ in thousands | 8,346,500 | 7,856,800 | 7,513,700 | 7,308,100 | 7,015,600 | 6,570,900 | 6,464,300 | 6,426,100 | 6,302,000 | 5,945,900 | 5,715,500 | 5,461,000 | 5,384,900 | 5,040,200 | 4,738,600 | 4,385,800 | 4,530,300 | 4,155,300 | 4,148,300 | 4,123,100 |
| Return on total capital | 21.32% | 22.39% | 23.05% | 22.37% | 23.05% | 23.11% | 21.90% | 19.91% | 18.71% | 17.91% | 17.71% | 18.09% | 17.33% | 17.54% | 17.11% | 17.17% | 20.28% | 20.77% | 21.22% | 21.58% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,576,800K ÷ ($3,742,600K + $8,346,500K)
= 21.32%
The return on total capital for Amphenol Corp. has been relatively stable and consistently above 20% over the past eight quarters. The company's ability to generate returns on the total capital employed in its operations has been strong, ranging from 20.25% to 22.49%. This indicates efficient use of both equity and debt in driving profitability. The trend shows a slight decline from the peak of 22.49% in Q4 2022 to 20.45% in Q4 2023, but overall, the company has maintained healthy returns on total capital. Analysis of other financial metrics and industry benchmarks would provide further insight into the company's financial performance and efficiency.