PPG Industries Inc (PPG)

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 1,956,000 2,084,000 1,927,000 1,818,000 1,518,000 1,474,000 1,490,000 1,515,000 1,934,000 1,984,000 2,114,000 1,664,000 1,488,000 1,538,000 1,447,000 1,668,000 1,767,000 1,718,000 1,697,000 1,810,000
Long-term debt US$ in thousands 5,748,000 5,596,000 6,099,000 7,082,000 6,503,000 6,478,000 6,766,000 6,834,000 6,572,000 6,092,000 6,387,000 5,336,000 5,171,000 4,828,000 4,613,000 4,751,000 4,539,000 4,885,000 4,845,000 4,626,000
Total stockholders’ equity US$ in thousands 7,832,000 7,751,000 7,614,000 7,142,000 6,592,000 6,034,000 6,182,000 6,218,000 6,286,000 6,253,000 6,242,000 5,839,000 5,689,000 5,310,000 4,832,000 4,723,000 5,284,000 5,247,000 5,079,000 4,904,000
Return on total capital 14.40% 15.61% 14.05% 12.78% 11.59% 11.78% 11.51% 11.61% 15.04% 16.07% 16.74% 14.89% 13.70% 15.17% 15.32% 17.61% 17.99% 16.96% 17.10% 18.99%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,956,000K ÷ ($5,748,000K + $7,832,000K)
= 14.40%

Over the analyzed period, PPG Industries, Inc. has shown a consistent improvement in its return on total capital, reflecting the company's ability to generate profits relative to the total capital deployed in its operations. The return on total capital increased from 12.03% in Q1 2022 to 16.70% in Q4 2023, indicating a positive trend.

This improvement suggests that PPG Industries has been effectively utilizing its capital to generate returns for its investors. A higher return on total capital signifies greater efficiency in deploying both debt and equity to generate profits.

The gradual increase in the return on total capital over the quarters demonstrates management's efforts in enhancing operational performance and profitability. Investors, lenders, and stakeholders can view this positive trend as a favorable indicator of the company's financial health and management effectiveness.


Peer comparison

Dec 31, 2023

Company name
Symbol
Return on total capital
PPG Industries Inc
PPG
14.40%
Axalta Coating Systems Ltd
AXTA
10.89%
RPM International Inc
RPM
36.03%