American Axle & Manufacturing (AXL)
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 | 248,800 | 177,200 | 240,800 | 294,900 | -412,200 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 562,800 | 604,900 | 627,300 | 457,800 | 370,500 |
| Return on total capital | 44.21% | 29.29% | 38.39% | 64.42% | -111.26% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $248,800K ÷ ($—K + $562,800K)
= 44.21%
American Axle & Manufacturing's return on total capital has fluctuated significantly over the years based on the provided data. In 2020, the company experienced a negative return on total capital of -111.26%, indicating that it incurred losses relative to its invested capital during that period. However, there was a remarkable turnaround in 2021, with the return on total capital jumping to a solid 64.42%. This improvement suggests that the company managed to generate significant profits compared to its total capital investment.
Subsequently, the return on total capital decreased in the following years but remained positive. In 2022, the return stood at 38.39%, indicating a lower but still healthy profitability level. The trend continued in 2023, with a return on total capital of 29.29%, showing a slight decline in profitability compared to the previous year. However, the company's performance improved in 2024, with a return on total capital of 44.21%, signifying a resurgence in profitability.
Overall, American Axle & Manufacturing's return on total capital demonstrates variability but generally exhibits positive performance in recent years, showcasing the company's ability to effectively utilize its capital to generate profits and create value for its stakeholders.
Peer comparison
Dec 31, 2024