Allegheny Technologies Incorporated (ATI)
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 | 466,400 | 466,800 | 454,800 | 322,900 | 287,300 | 245,800 | 162,500 | 162,800 | 117,600 | -1,037,700 | -1,077,200 | -1,339,300 | -1,302,700 | -115,900 | -11,800 | 371,600 | 366,300 | 342,300 | 342,700 | 343,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,373,000 | 1,238,900 | 1,194,000 | 1,096,500 | 1,045,900 | 813,500 | 762,900 | 658,700 | 685,600 | 541,400 | 473,000 | 482,900 | 521,100 | 1,733,700 | 1,735,300 | 2,087,800 | 2,090,100 | 2,168,000 | 2,026,400 | 1,934,200 |
| Return on total capital | 33.97% | 37.68% | 38.09% | 29.45% | 27.47% | 30.22% | 21.30% | 24.72% | 17.15% | -191.67% | -227.74% | -277.35% | -249.99% | -6.69% | -0.68% | 17.80% | 17.53% | 15.79% | 16.91% | 17.77% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $466,400K ÷ ($—K + $1,373,000K)
= 33.97%
ATI Inc's return on total capital has shown a fluctuating trend over the past eight quarters. The return on total capital ranged from a low of 6.83% in Q1 2022 to a high of 15.85% in Q1 2023. This indicates that the company's ability to generate profits from its total capital has varied significantly over this period.
The return on total capital improved steadily from Q1 2022 to Q1 2023, indicating an upward trajectory in the company's overall performance. However, there was a slight decrease noted in the most recent quarter (Q4 2023). This may warrant further investigation to understand the factors contributing to this decline.
On average, ATI Inc's return on total capital over the eight quarters was 13.94%. This suggests that the company has been able to generate a return of approximately 13.94% on its total capital over the analyzed period. Further analysis and comparison with industry benchmarks would be beneficial to evaluate ATI Inc's performance relative to its peers.