Axalta Coating Systems Ltd (AXTA)
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 | 700,000 | 669,700 | 634,000 | 557,900 | 566,900 | 506,000 | 467,900 | 435,400 | 396,500 | 396,600 | 404,700 | 506,800 | 474,200 | 508,400 | 520,500 | 260,100 | 271,700 | 250,400 | 235,000 | 454,200 |
| Long-term debt | US$ in thousands | 3,401,000 | — | — | — | 3,478,000 | — | — | — | 3,673,300 | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,912,000 | 1,905,000 | 1,773,000 | 1,731,000 | 1,727,000 | 1,604,100 | 1,644,200 | 1,570,100 | 1,453,500 | 1,273,300 | 1,326,200 | 1,375,400 | 1,492,900 | 1,440,800 | 1,488,300 | 1,359,400 | 1,433,000 | 1,339,700 | 1,213,100 | 1,291,000 |
| Return on total capital | 13.18% | 35.15% | 35.76% | 32.23% | 10.89% | 31.54% | 28.46% | 27.73% | 7.73% | 31.15% | 30.52% | 36.85% | 31.76% | 35.29% | 34.97% | 19.13% | 18.96% | 18.69% | 19.37% | 35.18% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $700,000K ÷ ($3,401,000K + $1,912,000K)
= 13.18%
The return on total capital for Axalta Coating Systems Ltd has shown fluctuations over the period from March 31, 2020, to December 31, 2024. Starting at 35.18% in March 2020, the return decreased to around 18-19% in the following quarters of 2020, indicating a temporary decrease in the company's efficiency in generating returns relative to its total invested capital.
However, from March 2021 onwards, there was a significant improvement in the return on total capital, reaching a peak of 36.85% in March 2022. This upward trend continued until the second quarter of 2024, with returns consistently above 30%. These high returns during this period suggest that the company effectively utilized its total capital to generate profits.
Nonetheless, there was a noticeable decline in the return on total capital in the fourth quarter of 2024, dropping to 13.18%. This decline could indicate potential challenges or changes in the company's operations impacting its ability to generate returns on the total capital invested.
Overall, the return on total capital for Axalta Coating Systems Ltd has displayed variability over the analyzed period, with periods of both growth and decline. Monitoring this ratio can provide insights into the company's capital utilization efficiency and overall financial performance.
Peer comparison
Dec 31, 2024