Sensata Technologies Holding NV (ST)

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	181,676	535,480	672,121	693,051	670,139	667,466	575,904	601,716	633,240	637,709	603,215	436,592	337,737	304,294	323,581	472,888	556,885	598,529	674,716	705,337
Long-term debt	US$ in thousands	3,373,990	3,771,810	3,770,510	3,768,630	3,958,930	4,208,670	4,213,510	4,215,500	4,214,950	4,214,390	4,213,830	3,961,400	3,213,750	3,963,080	3,220,830	3,220,360	3,219,880	3,219,410	3,216,140	3,216,730
Total stockholders’ equity	US$ in thousands	2,996,280	3,225,180	3,209,770	3,193,490	3,110,810	3,069,320	3,023,580	3,072,320	3,094,730	3,009,620	2,913,450	2,790,640	2,705,490	2,574,640	2,493,400	2,537,800	2,573,760	2,602,890	2,617,060	2,564,370
Return on total capital		2.85%	7.65%	9.63%	9.95%	9.48%	9.17%	7.96%	8.26%	8.66%	8.83%	8.46%	6.47%	5.71%	4.65%	5.66%	8.21%	9.61%	10.28%	11.57%	12.20%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $181,676K ÷ ($3,373,990K + $2,996,280K)
= 2.85%

Sensata Technologies Holding Plc's return on total capital has been relatively stable over the past eight quarters, ranging from 8.09% to 8.72%. This consistent performance indicates that the company has been efficient in generating profits from its total capital base. The gradual increase from Q4 2022 to Q4 2023 suggests that Sensata has been successful in improving its capital utilization and profitability over time. Overall, the company's return on total capital is healthy and demonstrates effective management of resources to generate returns for its stakeholders.