Allegheny Technologies Incorporated (ATI)
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 | 605,600 | 425,700 | 390,700 | 360,400 | 359,500 | 589,400 | 585,600 | 473,500 | 451,100 | 180,300 | 161,700 | 152,400 | 89,000 | -1,024,200 | -1,131,000 | -1,421,900 | -1,381,700 | -179,300 | -82,000 | 336,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,850,400 | 1,791,400 | 1,355,200 | 1,263,600 | 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 |
| Return on total capital | 32.73% | 23.76% | 28.83% | 28.52% | 26.18% | 47.57% | 49.05% | 43.18% | 43.13% | 22.16% | 21.20% | 23.14% | 12.98% | -189.18% | -239.11% | -294.45% | -265.15% | -10.34% | -4.73% | 16.09% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $605,600K ÷ ($—K + $1,850,400K)
= 32.73%
The return on total capital for Allegheny Technologies Incorporated has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
The return on total capital was positive in the first quarter of 2020 at 16.09%, indicating the company was generating a return on its total capital. However, in the subsequent quarters of 2020 and into 2021, the return on total capital turned negative, indicating that the company was not effectively utilizing its total capital to generate returns.
By December 31, 2021, the return on total capital rebounded to a positive 12.98%, showing signs of improvement. This positive trend continued into 2022 and 2023, with the return on total capital increasing steadily to 49.05% by June 30, 2023.
Although there was a slight decrease in the return on total capital by the end of December 2023, the figure remained relatively high at 26.18%. The return on total capital further improved in the first half of 2024, reaching 28.83% by June 30, 2024.
Overall, the return on total capital for Allegheny Technologies Incorporated has shown variability but has generally improved from the negative figures seen in 2020 and 2021 to positive and relatively stable levels in 2022 and 2023. The company's ability to generate returns on its total capital has shown positive signs, as indicated by the increasing percentages in the latter half of the reviewed period.