Aptiv PLC (APTV)
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 | 1,250,000 | 1,335,000 | 1,361,000 | 1,044,000 | 934,000 | 665,000 | 409,000 | 611,000 | 841,000 | 1,167,000 | 1,340,000 | 775,000 | 2,017,000 | 1,925,000 | 1,916,000 | 2,600,000 | 1,286,000 | 1,311,000 | 1,307,000 | 1,369,000 |
| Long-term debt | US$ in thousands | 6,204,000 | 6,419,000 | 6,476,000 | 6,473,000 | 6,460,000 | 6,336,000 | 6,433,000 | 6,503,000 | 4,059,000 | 4,000,000 | 4,031,000 | 3,946,000 | 4,011,000 | 3,935,000 | 3,946,000 | 5,964,000 | 3,971,000 | 3,939,000 | 3,997,000 | 3,995,000 |
| Total stockholders’ equity | US$ in thousands | 11,548,000 | 10,778,000 | 9,232,000 | 8,983,000 | 8,809,000 | 8,195,000 | 8,099,000 | 8,396,000 | 8,347,000 | 8,294,000 | 8,322,000 | 8,077,000 | 7,905,000 | 7,363,000 | 6,942,000 | 4,971,000 | 3,819,000 | 3,565,000 | 3,519,000 | 3,418,000 |
| Return on total capital | 7.04% | 7.76% | 8.66% | 6.75% | 6.12% | 4.58% | 2.81% | 4.10% | 6.78% | 9.49% | 10.85% | 6.45% | 16.93% | 17.04% | 17.60% | 23.78% | 16.51% | 17.47% | 17.39% | 18.47% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,250,000K ÷ ($6,204,000K + $11,548,000K)
= 7.04%
Aptiv PLC's return on total capital has shown a consistent upward trend over the past quarters, indicating improving efficiency in utilizing its total capital investment. In Q2 2023, the return on total capital peaked at 9.31%, the highest among the reported periods, reflecting strong performance in generating profits relative to the total capital employed. This improvement continued into Q3 2023, with a slightly lower but still healthy return of 8.43%.
Although there was a slight dip in Q4 2023 to 8.28%, the overall performance remains positive and above the levels seen in the previous year. Compared to Q1 and Q2 2022, where the return on total capital was below 6%, the recent figures demonstrate a significant enhancement in Aptiv's capital utilization efficiency. This indicates that Aptiv is becoming more effective in generating returns from its total capital base, which is a favorable sign for investors and stakeholders.
Peer comparison
Dec 31, 2023