Allegheny Technologies Incorporated (ATI)
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 | 610,300 | 466,400 | 446,600 | 107,100 | -1,454,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,850,400 | 1,373,000 | 1,045,900 | 685,600 | 521,100 |
| Return on total capital | 32.98% | 33.97% | 42.70% | 15.62% | -279.03% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $610,300K ÷ ($—K + $1,850,400K)
= 32.98%
Allegheny Technologies Incorporated's return on total capital has exhibited significant fluctuations over the years, reflecting varying operational efficiency and profitability. The company reported a notably negative return on total capital of -279.03% as of December 31, 2020, indicating a substantial loss relative to its invested capital. However, the subsequent years showed a positive trend, with the return on total capital improving to 15.62% by December 31, 2021, and further increasing to 42.70% by December 31, 2022, indicating a significant rebound in profitability and capital utilization.
The positive momentum continued in the following years, with the return on total capital standing at 33.97% as of December 31, 2023, and at 32.98% by December 31, 2024. These figures suggest that Allegheny Technologies Incorporated has managed to enhance its operational performance and generate higher returns relative to the total capital employed in its operations, although there was a slight dip in 2024 compared to the previous year.
Overall, the improving trend in the return on total capital for Allegheny Technologies Incorporated demonstrates the company's efforts to enhance operational efficiency and effectively utilize its capital resources to generate profits for its stakeholders. Continued monitoring of this ratio will be essential to assess the company's ongoing financial performance and sustainability.