PPG Industries Inc (PPG)
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 | 2,093,000 | 2,274,000 | 2,217,000 | 2,174,000 | 1,997,000 | 2,127,000 | 1,975,000 | 1,869,000 | 1,559,000 | 1,500,000 | 1,509,000 | 1,529,000 | 1,937,000 | 2,075,000 | 2,175,000 | 1,864,000 | 1,659,000 | 1,603,000 | 1,490,000 | 1,710,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,785,000 | 7,788,000 | 7,767,000 | 7,941,000 | 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 |
| Return on total capital | 30.85% | 29.20% | 28.54% | 27.38% | 25.50% | 27.44% | 25.94% | 26.17% | 23.65% | 24.86% | 24.41% | 24.59% | 30.81% | 33.18% | 34.84% | 31.92% | 29.16% | 30.19% | 30.84% | 36.21% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,093,000K ÷ ($—K + $6,785,000K)
= 30.85%
Return on total capital measures the efficiency and profitability of a company in generating returns for both its debt and equity holders. For PPG Industries Inc, the return on total capital has shown fluctuations over the quarters specified.
From March 31, 2020, to June 30, 2020, the return on total capital decreased from 36.21% to 30.84%. However, it started to pick up again and reached 34.84% by June 30, 2021. Subsequently, there was a slight decline in the ratio, dipping to 24.41% on June 30, 2022.
The return on total capital improved slightly in the following quarters and reached 30.85% by December 31, 2024, displaying signs of recovery. Overall, the trend indicates some volatility in PPG Industries Inc's efficiency in generating returns on all of its invested capital. Further analysis incorporating additional financial and operational metrics would provide a more comprehensive view of the company's financial performance.
Peer comparison
Dec 31, 2024