PHINIA Inc. (PHIN)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 269,000 | 276,000 | 266,000 |
| Long-term debt | US$ in thousands | 963,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 1,574,000 | 1,704,000 | 1,850,000 |
| Return on total capital | 10.60% | 16.20% | 14.38% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $269,000K ÷ ($963,000K + $1,574,000K)
= 10.60%
PHINIA Inc.'s return on total capital has displayed some fluctuations over the periods analyzed. The return on total capital was 14.38% as of March 31, 2024, showing a moderate level of profitability relative to the invested capital. The ratio then improved to 16.20% by September 30, 2024, indicating an increase in the company's efficiency in generating returns from its total capital. However, the return on total capital decreased to 10.60% by December 31, 2024, reflecting a decline in profitability and efficiency in utilizing the total capital during that period. Overall, PHINIA Inc. should continue to monitor and manage its capital effectively to sustain and improve its return on total capital in the future.
Peer comparison
Dec 31, 2024