American Axle & Manufacturing (AXL)
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 | 251,400 | 252,200 | 236,400 | 210,300 | 171,400 | 194,500 | 237,300 | 238,800 | 271,600 | 206,600 | 166,700 | 164,300 | 217,900 | 353,200 | 484,300 | 213,200 | -362,400 | -905,200 | -1,173,300 | -848,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 562,800 | 616,300 | 609,600 | 621,400 | 604,900 | 613,700 | 644,800 | 621,700 | 627,300 | 486,500 | 469,200 | 484,500 | 457,800 | 432,800 | 441,300 | 401,300 | 370,500 | 340,900 | 196,200 | 389,800 |
| Return on total capital | 44.67% | 40.92% | 38.78% | 33.84% | 28.34% | 31.69% | 36.80% | 38.41% | 43.30% | 42.47% | 35.53% | 33.91% | 47.60% | 81.61% | 109.74% | 53.13% | -97.81% | -265.53% | -598.01% | -217.75% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $251,400K ÷ ($—K + $562,800K)
= 44.67%
The return on total capital for American Axle & Manufacturing has shown significant fluctuations over the analyzed period. Starting from negative levels in March 2020 and June 2020, the company's return on total capital improved notably and turned positive from March 2021 onwards.
The increase in the return on total capital indicates that the company has been able to generate higher profits relative to the total capital employed in its operations. The return peaked at 109.74% in June 2021, signaling a period of strong performance.
Although there were fluctuations in subsequent quarters, the return on total capital generally remained positive, demonstrating the company's ability to effectively utilize its capital to generate returns for its investors.
Overall, the positive trend in the return on total capital for American Axle & Manufacturing reflects improving efficiency and profitability in utilizing its total capital resources.
Peer comparison
Dec 31, 2024