American Axle & Manufacturing (AXL)
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 | 177,200 | 200,600 | 234,800 | 237,500 | 240,800 | 176,400 | 144,500 | 146,600 | 196,400 | 302,700 | 417,600 | 146,800 | -398,200 | -912,900 | -1,171,800 | -854,600 | -316,100 | -300,100 | -59,600 | 33,200 |
| Long-term debt | US$ in thousands | 2,794,700 | 2,879,800 | 2,902,400 | 2,897,300 | 2,896,800 | 3,001,000 | 3,063,700 | 3,092,900 | 3,119,100 | — | — | — | 3,486,900 | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 977,600 | 1,406,800 | 1,569,500 | 1,521,300 |
| Return on total capital | 5.21% | 5.74% | 6.62% | 6.75% | 6.83% | 5.06% | 4.09% | 4.10% | 5.49% | 69.94% | 94.63% | 36.58% | -10.32% | -267.79% | -597.25% | -219.24% | -32.33% | -21.33% | -3.80% | 2.18% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $177,200K ÷ ($2,794,700K + $604,900K)
= 5.21%
American Axle & Manufacturing Holdings Inc's return on total capital has shown a slight decline in the most recent quarter, dropping from 5.51% in Q3 2023 to 5.09% in Q4 2023. This downward trend raises some concerns about the company's ability to generate returns on the capital invested in the business. Despite this decline, the return on total capital remains relatively stable over the past year, ranging from 5.09% to 7.72%.
The fluctuation in return on total capital may indicate varying efficiency in utilizing the company's total capital resources to generate profits. It is essential for the company to closely monitor and potentially improve this ratio to ensure sustainable and profitable operations in the long run. A consistent and improving return on total capital is indicative of effective capital allocation and operational management within the company.
Peer comparison
Dec 31, 2023