Visteon Corp (VC)
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 | 255,000 | 240,000 | 205,000 | 203,000 | 183,000 | 168,000 | 123,000 | 84,000 | 82,000 | 67,000 | 80,000 | 46,000 | -12,000 | 5,000 | 12,000 | 68,000 | 107,000 | 108,000 | 111,000 | 143,000 |
| Long-term debt | US$ in thousands | 318,000 | 323,000 | 327,000 | 331,000 | 336,000 | 340,000 | 349,000 | 349,000 | 349,000 | 349,000 | 349,000 | 349,000 | 349,000 | 348,000 | 748,000 | 748,000 | 348,000 | 348,000 | 348,000 | 348,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 480,000 | 474,000 | 477,000 | 487,000 |
| Return on total capital | 18.81% | 22.92% | 19.86% | 19.31% | 18.10% | 18.77% | 13.96% | 9.44% | 9.48% | 8.96% | 10.77% | 6.28% | -1.63% | 0.68% | 1.08% | 5.95% | 12.92% | 13.14% | 13.45% | 17.13% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $255,000K ÷ ($318,000K + $1,038,000K)
= 18.81%
Based on the data provided for Visteon Corp.'s return on total capital over the past eight quarters, we observe fluctuations in the performance of the company in generating returns relative to its total invested capital. The return on total capital ranged from 10.34% in Q1 2022 to a peak of 23.38% in Q3 2023.
The return on total capital metric reflects the efficiency of the company in generating profits from both equity and debt capital. A higher return on total capital indicates that Visteon Corp. is effectively utilizing its invested capital to generate profits for its stakeholders. In this case, we see an improving trend in the return on total capital from Q1 2022 to Q3 2023, with occasional fluctuations in between.
It is essential for Visteon Corp. to continue monitoring and maintaining this metric to ensure sustainable and efficient utilization of its capital resources. Analyzing the drivers behind the fluctuations in the return on total capital could provide insights into the company's operational efficiency, profitability, and overall financial health. Further analysis, in conjunction with other financial metrics, would offer a more comprehensive understanding of Visteon Corp.'s performance and help in making informed investment decisions.
Peer comparison
Dec 31, 2023