Amphenol Corporation (APH)
Return on total capital
| 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 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,169,500 | 2,911,500 | 2,754,700 | 2,682,000 | 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 |
| Long-term debt | US$ in thousands | 6,259,300 | 4,973,700 | 4,762,200 | 3,288,600 | 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 |
| Total stockholders’ equity | US$ in thousands | 9,792,000 | 9,452,500 | 8,980,100 | 8,681,500 | 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 |
| Return on total capital | 19.75% | 20.18% | 20.05% | 22.41% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,169,500K ÷ ($6,259,300K + $9,792,000K)
= 19.75%
Amphenol Corporation's return on total capital has shown a positive trend over the past few years, indicating efficient capital utilization. Starting from 17.17% in March 2020, it increased gradually to reach its peak at 23.11% in September 2022. However, there was a slight dip in the last quarter of 2022, followed by further fluctuations in the subsequent periods. Despite the varying percentages, the return on total capital generally remained above 17%, reflecting the company's ability to generate earnings in relation to the total capital employed. It is essential for investors to monitor this ratio to assess the company's profitability and efficiency in utilizing its capital resources effectively.