Sensata Technologies Holding NV (ST)

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 144,932 -135,030 188,211 155,454 168,702 543,714 657,667 707,975 618,773 607,407 527,813 536,183 593,208 591,093 604,124 438,065 366,326 331,728 334,505 478,682
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 2,890,440 2,957,770 3,011,550 2,974,830 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
Return on total capital 5.01% -4.57% 6.25% 5.23% 5.63% 16.86% 20.49% 22.17% 19.89% 19.79% 17.46% 17.45% 19.17% 19.64% 20.74% 15.70% 13.54% 12.88% 13.42% 18.86%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $144,932K ÷ ($—K + $2,890,440K)
= 5.01%

Sensata Technologies Holding NV's return on total capital has shown some fluctuations over the past few years, with values ranging from a high of 22.17% in March 2023 to a low of -4.57% in September 2024. The return on total capital peaked at 20.74% in June 2021 and has generally remained above 10%, indicating the company's ability to generate profits relative to the total capital invested in the business.

However, it is worth noting that there was a significant decrease in the return on total capital in the last quarter of 2024, dropping to 5.01% from 5.63% in the previous quarter. This decline may raise concerns about the company's efficiency in utilizing its total capital effectively to generate returns for its investors.

Overall, while Sensata Technologies Holding NV has demonstrated solid performance in terms of return on total capital during most periods, investors and analysts may need to monitor the trend closely to assess whether the recent decrease is a temporary anomaly or a potential long-term issue.