Sensata Technologies Holding NV (ST)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 200,026 | 670,139 | 633,240 | 337,737 | 556,885 |
| Long-term debt | US$ in thousands | 3,373,990 | 3,958,930 | 4,214,950 | 3,213,750 | 3,219,880 |
| Total stockholders’ equity | US$ in thousands | 2,996,280 | 3,110,810 | 3,094,730 | 2,705,490 | 2,573,760 |
| Return on total capital | 3.14% | 9.48% | 8.66% | 5.71% | 9.61% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $200,026K ÷ ($3,373,990K + $2,996,280K)
= 3.14%
Sensata Technologies Holding Plc has shown a fluctuating trend in its return on total capital over the past five years. In 2023, the return on total capital stood at 8.72%, which is slightly higher compared to the previous year's figure of 8.21% in 2022. However, this marks a decrease from the peak of 10.47% in 2019.
The return on total capital in 2021 was 8.83%, indicating a stable performance relative to the preceding year. It is noteworthy that there was a significant improvement in performance from 2020 to 2021. The return on total capital in 2020 was 5.53%, suggesting a lower profitability level for that year.
Overall, Sensata Technologies Holding Plc has maintained a moderate level of return on total capital, with fluctuations observed over the years. It is essential for the company to continue monitoring and enhancing its capital allocation strategies to optimize its return on total capital in the future.
Peer comparison
Dec 31, 2023