TE Connectivity Ltd (TEL)
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 | 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 | 1,897,000 | 2,011,000 | 2,043,000 |
| Long-term debt | US$ in thousands | 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 | 3,395,000 | 3,434,000 | 3,370,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 10,570,000 | 10,622,000 | 9,994,000 |
| Return on total capital | 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% | 13.58% | 14.31% | 15.29% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,565,000K ÷ ($3,585,000K + $13,136,000K)
= 15.34%
The return on total capital for TE Connectivity Ltd has shown fluctuations over the last few quarters. The ratio peaked at 19.91% in June 2022 before decreasing to 11.87% in March 2021. Subsequently, there was a significant improvement in the ratio, reaching 15.34% in December 2023. This indicates that the company's ability to generate earnings from its total capital has varied over time. It is essential for stakeholders to monitor this metric closely to assess the efficiency and profitability of TE Connectivity Ltd's capital utilization strategy.
Peer comparison
Dec 31, 2023