TE Connectivity Ltd (TEL)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,828,000 | 2,829,000 | 2,718,000 | 2,565,000 | 2,354,000 | 2,372,000 | 2,456,000 | 2,617,000 | 2,800,000 | 2,771,000 | 2,761,000 | 2,672,000 | 2,440,000 | 2,150,000 | 1,589,000 | 561,000 | 590,000 | 685,000 | 1,053,000 | 2,001,000 |
| Long-term debt | US$ in thousands | 3,332,000 | 2,953,000 | 2,961,000 | 3,585,000 | 3,529,000 | 3,915,000 | 3,916,000 | 3,398,000 | 3,292,000 | 3,380,000 | 3,441,000 | 3,519,000 | 3,589,000 | 3,629,000 | 3,602,000 | 3,516,000 | 3,452,000 | 3,395,000 | 3,752,000 | 3,412,000 |
| Total stockholders’ equity | US$ in thousands | 12,486,000 | 12,755,000 | 12,449,000 | 13,136,000 | 11,551,000 | 11,456,000 | 11,126,000 | 11,468,000 | 10,897,000 | 10,537,000 | 10,549,000 | 11,128,000 | 10,748,000 | 10,162,000 | 9,783,000 | 9,979,000 | 9,495,000 | 9,036,000 | 9,066,000 | 10,557,000 |
| Return on total capital | 17.88% | 18.01% | 17.64% | 15.34% | 15.61% | 15.43% | 16.33% | 17.60% | 19.73% | 19.91% | 19.74% | 18.24% | 17.02% | 15.59% | 11.87% | 4.16% | 4.56% | 5.51% | 8.22% | 14.32% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,828,000K ÷ ($3,332,000K + $12,486,000K)
= 17.88%
TE Connectivity Ltd's return on total capital has shown a generally positive trend over the past few quarters, with fluctuations within a certain range. The return on total capital ranged from 4.16% to 19.91% during the period from December 2019 to September 2024.
There was a notable increase in return on total capital from March 2021 to September 2022, reaching a peak of 19.91% in June 2022. However, there was a slight decline in the subsequent quarters, with a low of 4.16% in December 2020.
Overall, TE Connectivity Ltd has managed to maintain a return on total capital above 15% for most of the periods, indicating efficient utilization of its total capital to generate profit. The company's ability to consistently generate returns on its invested capital demonstrates strong operational performance and effective management of resources. Further analysis of the underlying factors contributing to these trends could provide more insights into the company's financial health and performance.
Peer comparison
Sep 30, 2024