CNH Industrial N.V. (CNH)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,655,000 | 3,980,000 | 4,255,000 | 4,310,000 | 4,231,000 | 4,085,000 | 3,802,000 | 3,505,000 | 2,935,000 | 2,526,000 | 2,567,000 | 2,614,000 | 2,660,000 | 1,335,000 | 836,000 | 252,000 | 109,000 | 1,248,000 | 1,512,000 | 1,949,000 |
| Long-term debt | US$ in thousands | 27,300,000 | 26,808,000 | 27,780,000 | 27,326,000 | 24,958,000 | 24,870,000 | 23,552,000 | 22,962,000 | 20,922,000 | 20,817,000 | 21,335,000 | 21,091,000 | 23,749,000 | 24,512,000 | 23,805,000 | 26,053,000 | 24,670,000 | 24,449,000 | 23,518,000 | 24,854,000 |
| Total stockholders’ equity | US$ in thousands | 7,769,000 | 7,662,000 | 8,012,000 | 8,234,000 | 8,115,000 | 7,630,000 | 7,451,000 | 6,976,000 | 6,409,000 | 5,843,000 | 5,656,000 | 6,853,000 | 6,292,000 | 6,074,000 | 5,506,000 | 5,029,000 | 4,840,000 | 5,963,000 | 5,658,000 | 6,156,000 |
| Return on total capital | 10.42% | 11.55% | 11.89% | 12.12% | 12.79% | 12.57% | 12.26% | 11.71% | 10.74% | 9.47% | 9.51% | 9.35% | 8.85% | 4.36% | 2.85% | 0.81% | 0.37% | 4.10% | 5.18% | 6.29% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,655,000K ÷ ($27,300,000K + $7,769,000K)
= 10.42%
CNH Industrial N.V.'s return on total capital has displayed some fluctuations over the past few quarters. The trend indicates a generally improving performance from the end of 2019 to the third quarter of 2023, with an increasing return on total capital. However, there was a slight decline in the return on total capital in the most recent quarter, dropping from 11.89% in March 2024 to 10.42% in September 2024.
The return on total capital peaked at 12.79% in September 2023 before gradually declining in the subsequent quarters. This suggests that CNH Industrial N.V. was generating a higher return on its total capital in the past compared to the most recent quarters.
It is essential for the company to analyze the factors influencing this downward trend in order to identify areas for improvement. The management should focus on enhancing operational efficiency and profitability to potentially increase the return on total capital in the future.
Peer comparison
Sep 30, 2024