Aptiv PLC (APTV)
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 | 2,394,000 | 2,166,000 | 2,055,000 | 1,346,000 | 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 |
| Long-term debt | US$ in thousands | 7,843,000 | 8,283,000 | 5,504,000 | 4,721,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 8,796,000 | 8,882,000 | 11,467,000 | 11,120,000 | 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 |
| Return on total capital | 14.39% | 12.62% | 12.11% | 8.50% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,394,000K ÷ ($7,843,000K + $8,796,000K)
= 14.39%
Aptiv PLC's Return on Total Capital has displayed fluctuations over the past few years. The ratio stood at 23.78% as of March 31, 2020, before declining to 16.93% by December 31, 2020. Subsequently, there was a more significant drop to 6.45% by March 31, 2021. The ratio showed signs of recovery in the following quarters, reaching 10.85% by June 30, 2021. However, it fluctuated around single digits for the next few quarters, indicating some instability in the company's capital utilization efficiency.
By December 31, 2024, Aptiv PLC's Return on Total Capital had improved significantly to 14.39%, showing a positive trend in capital efficiency. It is essential for the company to maintain this momentum and continue enhancing its return on total capital to ensure sustainable growth and value creation for its stakeholders.
Peer comparison
Dec 31, 2024