Harley-Davidson Inc (HOG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 547,886 | 897,300 | 954,862 | 834,277 | 137,522 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 773,378 | 3,252,810 | 2,906,810 | 2,553,240 | 1,722,780 |
| Return on total capital | 70.84% | 27.59% | 32.85% | 32.68% | 7.98% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $547,886K ÷ ($—K + $773,378K)
= 70.84%
Harley-Davidson Inc's return on total capital has shown a notable improvement over the past years. The return on total capital increased significantly from 7.98% as of December 31, 2020, to 70.84% as of December 31, 2024.
This upward trend suggests that the company has been able to generate higher returns relative to the total capital employed in its operations. The substantial increase in the return on total capital indicates that Harley-Davidson Inc has been more efficient in utilizing its capital to generate profits.
The sharp improvement in the return on total capital is a positive sign for investors and indicates the company's ability to generate higher returns on its investments. It also reflects positively on the company's operational performance and management's effectiveness in utilizing capital resources to drive profitability.
Overall, the increasing trend in the return on total capital demonstrates Harley-Davidson Inc's ability to deliver strong financial performance and generate value for its shareholders.
Peer comparison
Dec 31, 2024