Axalta Coating Systems Ltd (AXTA)
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 | 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 | 489,000 | 503,000 | 419,800 | 398,700 |
| Long-term debt | US$ in thousands | 3,478,500 | — | — | — | 3,673,300 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,727,300 | 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 | 1,354,200 | 1,285,700 | 1,252,500 | 1,206,200 |
| Return on total capital | 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% | 36.11% | 39.12% | 33.52% | 33.05% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 a fluctuating trend over the past eight quarters. The return on total capital ranged from 8.03% to 11.23%. In the latest quarter, Q4 2023, the return on total capital was 11.23%, indicating an increase from the previous quarter. This suggests that the company has been able to generate a higher return relative to the total capital employed. However, it is important to note that the return on total capital has not followed a consistent upward or downward trajectory, which may reflect changes in the company's operational efficiency, profitability, or investment strategies over the period analyzed. Overall, further analysis and evaluation of the company's financial performance and capital allocation strategy would provide more insights into the factors driving these fluctuations in return on total capital.
Peer comparison
Dec 31, 2023