Visteon Corp (VC)
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 | 306,000 | 305,000 | 344,000 | 285,000 | 273,000 | 255,000 | 223,000 | 217,000 | 197,000 | 184,000 | 131,000 | 91,000 | 86,000 | 68,000 | 116,000 | 86,000 | 27,000 | 48,000 | 25,000 | 74,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,229,000 | 1,185,000 | 1,113,000 | 1,049,000 | 1,038,000 | 724,000 | 705,000 | 720,000 | 675,000 | 555,000 | 532,000 | 541,000 | 516,000 | 399,000 | 394,000 | 384,000 | 387,000 | 385,000 | 358,000 | 394,000 |
| Return on total capital | 24.90% | 25.74% | 30.91% | 27.17% | 26.30% | 35.22% | 31.63% | 30.14% | 29.19% | 33.15% | 24.62% | 16.82% | 16.67% | 17.04% | 29.44% | 22.40% | 6.98% | 12.47% | 6.98% | 18.78% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $306,000K ÷ ($—K + $1,229,000K)
= 24.90%
The return on total capital of Visteon Corp has shown fluctuations over the analyzed periods. Starting at a relatively high level of 18.78% in March 2020, it decreased to 6.98% by June 2020, indicating a significant decline in the company's efficiency in generating returns from its capital. There was a subsequent increase to 12.47% by September 2020, followed by another dip to 6.98% by December 2020.
However, from March 2021 onwards, the return on total capital began to show a more positive trend, surpassing the initial levels. Notably, the ratio reached its peak at 35.22% in September 2023, indicating substantial improvement in the company's capital efficiency during that period.
Overall, while there were fluctuations in Visteon Corp's return on total capital, the general trend displayed an upward trajectory from March 2021 to September 2023 before experiencing a slight decline towards the end of the analyzed period in December 2024. This suggests that the company made efforts to enhance its capital utilization efficiency during the specified time frame.
Peer comparison
Dec 31, 2024