Harley-Davidson Inc (HOG)
Return on total capital
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 909,203 | 926,868 | 1,028,154 | 1,068,370 | 964,662 | 945,529 | 800,998 | 800,639 | 850,209 | 719,447 | 654,890 | 260,923 | 15,391 | 154,299 | 138,633 | 512,684 | 588,493 | 570,634 | 594,543 | 657,803 |
| Long-term debt | US$ in thousands | 4,990,590 | 5,856,000 | 5,765,250 | 5,275,170 | 4,457,050 | 4,738,230 | 5,204,320 | 4,470,090 | 4,595,620 | 4,876,290 | 4,745,020 | 5,478,090 | 5,932,930 | 6,171,680 | 6,488,500 | 4,478,080 | 5,124,830 | 4,607,040 | 4,650,180 | 4,744,690 |
| Total stockholders’ equity | US$ in thousands | 3,252,810 | 3,310,020 | 3,188,900 | 3,093,060 | 2,903,520 | 2,840,210 | 2,635,150 | 2,509,100 | 2,553,240 | 2,333,890 | 2,184,270 | 1,976,390 | 1,722,780 | 1,769,900 | 1,623,700 | 1,691,980 | 1,804,000 | 1,836,220 | 1,910,640 | 1,797,610 |
| Return on total capital | 11.03% | 10.11% | 11.48% | 12.77% | 13.11% | 12.48% | 10.22% | 11.47% | 11.89% | 9.98% | 9.45% | 3.50% | 0.20% | 1.94% | 1.71% | 8.31% | 8.49% | 8.86% | 9.06% | 10.05% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $909,203K ÷ ($4,990,590K + $3,252,810K)
= 11.03%
To analyze Harley-Davidson, Inc.'s return on total capital based on the data provided, we observe that the company's return on total capital has fluctuated over the past eight quarters. In Q1 2023 and Q2 2023, the return on total capital was relatively high at 9.62% and 9.10%, respectively. These figures indicate that the company was generating a solid return on the total capital employed during these periods.
However, there was a slight decline in Q3 2023 and Q4 2023, with return on total capital figures of 7.57% and 7.50%, respectively. Despite these decreases, the company's return on total capital remained above 7%, suggesting that Harley-Davidson, Inc. was still generating a reasonable return on its total capital investment.
Comparing the latest data with the same periods in the previous year, we can see that the return on total capital in Q4 2023 was slightly lower than in Q4 2022. However, the overall trend indicates that Harley-Davidson, Inc. has maintained a relatively stable return on total capital over the past eight quarters, with some fluctuations within the range of 7% to 9.62%.
Overall, the company's ability to generate a return on total capital above 7% consistently demonstrates its efficiency in utilizing its capital resources to generate profits for shareholders. Further analysis of the underlying factors impacting this ratio would provide deeper insights into the company's financial performance and its ability to create value for investors.
Peer comparison
Dec 31, 2023