Howmet Aerospace Inc (HWM)
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 | 1,193,000 | 1,076,000 | 941,000 | 883,000 | 835,000 | 766,000 | 691,000 | 627,000 | 583,000 | 594,000 | 573,000 | 443,000 | 602,000 | 926,000 | 1,146,000 | 933,000 | 931,000 | 665,000 | 717,000 | 1,167,000 |
| Long-term debt | US$ in thousands | 3,500,000 | 3,794,000 | 3,989,000 | 3,988,000 | 4,162,000 | 4,170,000 | 4,169,000 | 4,228,000 | 4,227,000 | 4,272,000 | 4,227,000 | 4,224,000 | 4,699,000 | 4,697,000 | 4,695,000 | 5,777,000 | 4,906,000 | 4,905,000 | 5,901,000 | 5,899,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,577,000 | 3,501,000 | 3,449,000 | 4,783,000 | 4,591,000 | 4,696,000 | 4,854,000 | 5,166,000 |
| Return on total capital | 15.83% | 14.04% | 12.12% | 11.40% | 10.76% | 10.29% | 9.10% | 8.16% | 7.54% | 7.57% | 7.32% | 5.62% | 7.27% | 11.30% | 14.07% | 8.84% | 9.80% | 6.93% | 6.67% | 10.55% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,193,000K ÷ ($3,500,000K + $4,037,000K)
= 15.83%
Howmet Aerospace Inc's return on total capital has shown a positive trend over the past eight quarters, increasing from 11.34% in Q1 2022 to 15.83% in Q4 2023. This indicates that the company has been effectively utilizing its capital resources to generate profits. The steady improvement in return on total capital reflects management's ability to generate higher returns relative to the total capital employed in the business. Overall, the increasing trend in this ratio suggests that Howmet Aerospace Inc has been efficiently managing its investments and operations to enhance shareholder value.
Peer comparison
Dec 31, 2023