TE Connectivity Ltd (TEL)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,796,000 | 2,354,000 | 2,800,000 | 2,440,000 | 590,000 |
| Long-term debt | US$ in thousands | 3,332,000 | 3,529,000 | 3,292,000 | 3,589,000 | 3,452,000 |
| Total stockholders’ equity | US$ in thousands | 12,486,000 | 11,551,000 | 10,897,000 | 10,748,000 | 9,495,000 |
| Return on total capital | 17.68% | 15.61% | 19.73% | 17.02% | 4.56% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,796,000K ÷ ($3,332,000K + $12,486,000K)
= 17.68%
TE Connectivity Ltd has shown a consistent improvement in its return on total capital over the past five years. The company's return on total capital increased from 4.56% in September 2020 to 17.68% in September 2024. This indicates that the company has been able to generate more income from its total capital employed, reflecting improved efficiency and profitability in its operations.
The performance of TE Connectivity Ltd in terms of return on total capital has outperformed previous years, with fluctuations in recent years but an overall increasing trend. This suggests that the company has been effective in utilizing its capital resources to generate profits for its shareholders. The significant improvement in return on total capital from 2020 to 2024 demonstrates the company's ability to optimize its use of capital and generate higher returns for investors.
Peer comparison
Sep 30, 2024