NXP Semiconductors NV (NXPI)
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 | 3,497,000 | 3,790,000 | 3,790,000 | 2,549,000 | 363,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,183,000 | 8,644,000 | 7,449,000 | 6,528,000 | 8,944,000 |
| Return on total capital | 38.08% | 43.85% | 50.88% | 39.05% | 4.06% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,497,000K ÷ ($—K + $9,183,000K)
= 38.08%
The return on total capital for NXP Semiconductors NV has shown a significant improvement over the years, indicating the company's ability to efficiently utilize its capital resources.
In December 2020, the return on total capital was 4.06%, reflecting a relatively lower efficiency in generating returns from the total capital employed.
However, there was a remarkable increase in performance by December 2021, with the return on total capital rising to 39.05%, demonstrating a substantial enhancement in the company's capital utilization and profitability.
The positive trend continued into December 2022, where the return on total capital further improved to 50.88%, reaching a new high and indicating the company's effective management of its capital structure.
In December 2023, the return on total capital remained strong at 43.85%, showcasing the company's continued ability to generate attractive returns relative to the total capital invested.
By December 2024, although there was a slight decrease to 38.08%, the return on total capital remained at a healthy level, suggesting that NXP Semiconductors NV has maintained its efficiency in utilizing capital resources to drive profitability.
Overall, the upward trajectory in the return on total capital for NXP Semiconductors NV reflects a positive trend of capital efficiency and profitability for the company over the analyzed period.
Peer comparison
Dec 31, 2024