Aptiv PLC (APTV)
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 | 2,347,000 | 1,295,000 | 934,000 | 841,000 | 2,017,000 |
| Long-term debt | US$ in thousands | 7,843,000 | 6,204,000 | 6,460,000 | 4,059,000 | 4,011,000 |
| Total stockholders’ equity | US$ in thousands | 8,796,000 | 11,548,000 | 8,809,000 | 8,347,000 | 7,905,000 |
| Return on total capital | 14.11% | 7.29% | 6.12% | 6.78% | 16.93% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,347,000K ÷ ($7,843,000K + $8,796,000K)
= 14.11%
Aptiv PLC's return on total capital has displayed fluctuations over the past five years, ranging from a high of 16.93% on December 31, 2020, to a low of 6.12% on December 31, 2022. Although there was a dip in 2022, the return improved to 7.29% by December 31, 2023 and further increased to 14.11% by December 31, 2024.
The return on total capital is a key indicator of Aptiv's efficiency in generating returns from its total capital employed. The variations in the return on total capital suggest changes in the company's ability to effectively utilize its capital resources to generate profits. Overall, the upward trend in recent years indicates an improvement in Aptiv's capital efficiency, reflecting positively on the company's financial performance.
Peer comparison
Dec 31, 2024