Axalta Coating Systems Ltd (AXTA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 566,900 | 396,500 | 474,200 | 271,700 | 489,000 |
| Long-term debt | US$ in thousands | 3,478,500 | 3,673,300 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,727,300 | 1,453,500 | 1,492,900 | 1,433,000 | 1,354,200 |
| Return on total capital | 10.89% | 7.73% | 31.76% | 18.96% | 36.11% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $566,900K ÷ ($3,478,500K + $1,727,300K)
= 10.89%
Axalta Coating Systems Ltd's return on total capital has shown variability over the past five years. In 2023, the company's return on total capital increased to 11.23%, demonstrating an improvement compared to the previous year. This indicates that the company was able to generate a return of 11.23% for every dollar of total capital employed in the business in 2023.
Comparing 2023 to 2021, Axalta Coating Systems Ltd's return on total capital decreased slightly from 8.69% to 8.21%. This suggests a marginal decline in the company's efficiency in utilizing its total capital to generate profits. However, the return on total capital in 2023 was still higher than in 2021.
In 2020, the company's return on total capital was 5.74%, which was lower compared to 2021 and 2022. This indicates that Axalta Coating Systems Ltd faced some challenges in generating returns on its total capital in 2020.
In 2019, the company's return on total capital was 9.41%, showing a significant improvement compared to 2020. This indicates that Axalta Coating Systems Ltd was more efficient in utilizing its total capital to generate returns in 2019.
Overall, Axalta Coating Systems Ltd's return on total capital has demonstrated fluctuations over the past five years, with the company experiencing both improvements and declines in its efficiency in generating returns on its total capital. It is important for the company to continue monitoring and managing its capital effectively to optimize its profitability and value creation for shareholders.
Peer comparison
Dec 31, 2023