CNH Industrial N.V. (CNH)
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 | 3,062,000 | 3,376,000 | 3,597,000 | 3,880,000 | 4,012,000 | 4,044,000 | 3,934,000 | 3,688,000 | 3,334,000 | 2,706,000 | 2,338,000 | 2,414,000 | 2,526,000 | 2,660,000 | 1,335,000 | 836,000 | 252,000 | 109,000 | 1,248,000 | 1,512,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 23,749,000 | 24,512,000 | 23,805,000 | 26,053,000 | 24,670,000 | 24,449,000 | 23,518,000 |
| Total stockholders’ equity | US$ in thousands | 7,651,000 | 7,643,000 | 7,538,000 | 7,892,000 | 8,114,000 | 7,985,000 | 7,500,000 | 7,324,000 | 6,927,000 | 6,354,000 | 5,788,000 | 5,602,000 | 6,778,000 | 6,292,000 | 6,074,000 | 5,506,000 | 5,029,000 | 4,840,000 | 5,963,000 | 5,658,000 |
| Return on total capital | 40.02% | 44.17% | 47.72% | 49.16% | 49.45% | 50.64% | 52.45% | 50.35% | 48.13% | 42.59% | 40.39% | 43.09% | 37.27% | 8.85% | 4.36% | 2.85% | 0.81% | 0.37% | 4.10% | 5.18% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,062,000K ÷ ($—K + $7,651,000K)
= 40.02%
CNH Industrial N.V.'s return on total capital has shown fluctuations over the reported periods. The return on total capital was relatively low at the end of 2020, standing at 0.81%, before experiencing a significant increase to 37.27% by the end of 2021. The return on total capital continued to improve, reaching its peak at 52.45% by the end of June 2023. However, there was a subsequent decrease in the return on total capital, dropping to 40.02% by the end of December 2024.
Overall, CNH Industrial N.V.'s return on total capital exhibited significant variability over the reporting periods, with both highs and lows. It is essential for investors and stakeholders to closely monitor this metric to assess the company's efficiency in generating returns from its total capital base.
Peer comparison
Dec 31, 2024