Dana Inc (DAN)
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 | 313,000 | 170,000 | 400,000 | 165,000 | 316,000 |
| Long-term debt | US$ in thousands | 2,582,000 | 2,304,000 | 2,338,000 | 2,376,000 | 2,384,000 |
| Total stockholders’ equity | US$ in thousands | 1,575,000 | 1,551,000 | 1,922,000 | 1,758,000 | 1,873,000 |
| Return on total capital | 7.53% | 4.41% | 9.39% | 3.99% | 7.42% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $313,000K ÷ ($2,582,000K + $1,575,000K)
= 7.53%
Dana Inc's return on total capital has varied over the past five years, ranging from 4.91% in 2020 to 15.11% in 2019, with notable fluctuations in between. The company experienced a significant decline in return on total capital from 2019 to 2020, followed by a gradual increase in subsequent years. The return on total capital peaked in 2021 at 9.01%, before slightly decreasing to 8.91% in 2023. Overall, Dana Inc's return on total capital demonstrates variability, indicating fluctuations in the company's ability to generate profits relative to its total capital employed.
Peer comparison
Dec 31, 2023