Axalta Coating Systems Ltd (AXTA)
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 | 706,000 | 566,900 | 396,500 | 474,200 | 271,700 |
| Long-term debt | US$ in thousands | 3,401,000 | 3,478,000 | 3,673,300 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,912,000 | 1,727,000 | 1,453,500 | 1,492,900 | 1,433,000 |
| Return on total capital | 13.29% | 10.89% | 7.73% | 31.76% | 18.96% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $706,000K ÷ ($3,401,000K + $1,912,000K)
= 13.29%
Axalta Coating Systems Ltd's return on total capital has varied over the years as follows:
- In December 31, 2020, the return on total capital was 18.96%, showing a healthy profitability level.
- By December 31, 2021, the return on total capital improved significantly to 31.76%, indicating even higher profitability and potential efficiency in capital utilization.
- However, there was a notable decline by December 31, 2022, with the return on total capital dropping to 7.73%, potentially signaling challenges in generating adequate returns on the total invested capital.
- The company's performance rebounded moderately by December 31, 2023, with a return on total capital of 10.89%, although still below the levels seen in 2021.
- By December 31, 2024, Axalta Coating Systems Ltd's return on total capital increased to 13.29%, suggesting a slight improvement but still not reaching the peak level seen in 2021.
Overall, the fluctuations in return on total capital indicate varying levels of profitability and capital efficiency for Axalta Coating Systems Ltd over the years, highlighting the importance of continuous monitoring and improvement in capital allocation strategies.
Peer comparison
Dec 31, 2024