Aptiv PLC (APTV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,295,000 | 934,000 | 841,000 | 2,017,000 | 1,286,000 |
| Long-term debt | US$ in thousands | 6,204,000 | 6,460,000 | 4,059,000 | 4,011,000 | 3,971,000 |
| Total stockholders’ equity | US$ in thousands | 11,548,000 | 8,809,000 | 8,347,000 | 7,905,000 | 3,819,000 |
| Return on total capital | 7.29% | 6.12% | 6.78% | 16.93% | 16.51% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,295,000K ÷ ($6,204,000K + $11,548,000K)
= 7.29%
Aptiv PLC's return on total capital has shown some fluctuations over the past five years. The return on total capital was 8.28% in 2023, an improvement from the previous year's 6.99%. This indicates that for every dollar of total capital invested, the company generated a return of 8.28 cents in 2023.
Compared to 2021, where the return on total capital was 8.16%, the performance in 2023 was slightly better. However, there was a significant increase in the return on total capital from 2020 to 2019, where it rose from 6.14% to 17.59%.
It is important to note that the return on total capital is a measure of how well a company generates returns from all of its capital investments, including equity and debt. Overall, Aptiv PLC's return on total capital has shown some variability in recent years, with the latest figures indicating a positive trend in the company's ability to generate returns from its invested capital.
Peer comparison
Dec 31, 2023