Visteon Corp (VC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 313,000 | 274,000 | 189,000 | 91,000 | -3,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,229,000 | 1,038,000 | 675,000 | 516,000 | 387,000 |
| Return on total capital | 25.47% | 26.40% | 28.00% | 17.64% | -0.78% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $313,000K ÷ ($—K + $1,229,000K)
= 25.47%
Visteon Corp's Return on Total Capital has shown a significant improvement over the analyzed period. Starting at a negative figure of -0.78% in 2020, the company managed to turn this around and achieve positive returns in the subsequent years. In 2021, the Return on Total Capital stood at 17.64%, which further increased to 28.00% in 2022, indicating a strong performance in utilizing its total capital efficiently. The trend continued in 2023 and 2024, with the Return on Total Capital remaining above 25% in both years. This demonstrates Visteon Corp's ability to generate substantial returns relative to its total capital employed, reflecting positively on its operational efficiency and potential profitability.
Peer comparison
Dec 31, 2024