AptarGroup Inc (ATR)

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	499,078	470,228	451,962	446,543	415,554	407,750	382,457	363,331	375,264	379,811	359,684	339,690	352,398	344,968	368,328	357,335	337,479	331,399	323,673	363,059
Long-term debt	US$ in thousands	600,000	775,500	614,500	621,200	600,000	517,300	801,100	828,900	868,700	900,000	1,200,000	1,200,000	900,000	900,000	1,100,000	1,100,000	1,100,000	1,100,000	1,100,000	1,000,000
Total stockholders’ equity	US$ in thousands	2,471,890	2,539,010	2,396,450	2,348,860	2,306,820	2,199,740	2,174,390	2,112,820	2,053,940	1,874,680	1,934,110	1,983,270	1,969,410	1,957,900	1,986,280	1,900,410	1,850,390	1,759,570	1,645,630	1,587,290
Return on total capital		16.25%	14.19%	15.01%	15.03%	14.30%	15.01%	12.85%	12.35%	12.84%	13.69%	11.48%	10.67%	12.28%	12.07%	11.93%	11.91%	11.44%	11.59%	11.79%	14.03%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $499,078K ÷ ($600,000K + $2,471,890K)
= 16.25%

The return on total capital for AptarGroup Inc has shown fluctuation over the years, ranging from a low of 10.67% on March 31, 2022, to a high of 16.25% on December 31, 2024. Overall, the company's return on total capital has demonstrated a generally positive trend, with an average return of approximately 12.58% over the period covered in the data.

The return on total capital is a key financial metric that indicates how efficiently a company is generating profits from its capital investments. AptarGroup Inc's improving return on total capital suggests that the company has been able to effectively utilize its total capital to generate returns for its shareholders. This can be attributed to factors such as effective cost management, operational efficiency, and strategic investment decisions.

Investors and analysts may view the increasing return on total capital positively as it indicates the company's ability to generate profits relative to the amount of capital employed. However, it is important to continue monitoring this metric to ensure that the trend remains sustainable and in line with the company's overall financial strategy.