Harley-Davidson Inc (HOG)
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 | 909,203 | 964,662 | 850,209 | 15,391 | 588,493 |
| Long-term debt | US$ in thousands | 4,990,590 | 4,457,050 | 4,595,620 | 5,932,930 | 5,124,830 |
| Total stockholders’ equity | US$ in thousands | 3,252,810 | 2,903,520 | 2,553,240 | 1,722,780 | 1,804,000 |
| Return on total capital | 11.03% | 13.11% | 11.89% | 0.20% | 8.49% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $909,203K ÷ ($4,990,590K + $3,252,810K)
= 11.03%
The return on total capital for Harley-Davidson, Inc. has fluctuated over the past five years. In 2023, the return on total capital was 7.50%, which decreased from 9.26% in 2022. This slight decline indicates a decrease in the overall efficiency of the company in generating profits from its total capital.
Comparing 2023 to 2021, there was a slight improvement in the return on total capital from 8.76% to 7.50%, suggesting better utilization of capital in generating returns. However, the return on total capital in 2023 is significantly higher compared to the low of 1.30% in 2020, indicating a substantial recovery in capital efficiency over the past few years.
Overall, although there have been fluctuations in return on total capital, Harley-Davidson, Inc. has shown the ability to enhance its capital efficiency and improve profitability over the years, with slight variations in performance.
Peer comparison
Dec 31, 2023