Howmet Aerospace Inc (HWM)
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 | 1,565,000 | 1,455,000 | 1,353,000 | 1,268,000 | 1,193,000 | 1,076,000 | 941,000 | 883,000 | 835,000 | 766,000 | 691,000 | 650,000 | 606,000 | 732,000 | 711,000 | 569,000 | 766,000 | 890,000 | 1,120,000 | 953,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,554,000 | 4,503,000 | 4,277,000 | 4,086,000 | 4,037,000 | 3,872,000 | 3,775,000 | 3,761,000 | 3,601,000 | 3,273,000 | 3,421,000 | 3,457,000 | 3,508,000 | 3,579,000 | 3,598,000 | 3,662,000 | 3,580,000 | 3,501,000 | 3,449,000 | 4,783,000 |
| Return on total capital | 34.37% | 32.31% | 31.63% | 31.03% | 29.55% | 27.79% | 24.93% | 23.48% | 23.19% | 23.40% | 20.20% | 18.80% | 17.27% | 20.45% | 19.76% | 15.54% | 21.40% | 25.42% | 32.47% | 19.92% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,565,000K ÷ ($—K + $4,554,000K)
= 34.37%
Based on the provided data, the return on total capital for Howmet Aerospace Inc has shown some fluctuations over the past few years. The return on total capital is a key financial ratio that measures a company's profitability and efficiency in utilizing its capital effectively.
From March 31, 2020, to December 31, 2020, Howmet Aerospace Inc experienced a decline in return on total capital from 19.92% to 21.40%. However, the ratio decreased further to 15.54% by March 31, 2021, before gradually recovering and reaching 34.37% by December 31, 2024.
The company's return on total capital trended positively overall during this period, with some fluctuations along the way. The increase in the return on total capital indicates that Howmet Aerospace Inc has been generating higher profits in relation to the total capital employed in its operations.
Overall, the improving trend in return on total capital suggests that Howmet Aerospace Inc has been efficient in managing its capital and generating healthy returns for its investors over the years covered in the data.
Peer comparison
Dec 31, 2024