Earnings Analysis for APTV (Last 3 Years)
1. Revenue Analysis
Total and Operating Revenue: APTV’s operating revenue has shown fluctuations over the period, with the latest recorded at $4.901 billion on 2024-03-31, showing steady growth from $4.818 billion on 2023-03-31. The total revenue reached a peak of $5.2 billion by 2023-06-30.
Gross Profit Margins: Gross profit has generally increased, peaking at $922 million in 2023-12-31, up from $760 million as of 2023-03-31. This indicates an improving efficiency in revenue conversion over goods and services cost.
2. Cost Management
Cost of Revenue: The cost of revenue fluctuated, with the highest cost recorded as $4.336 billion on 2023-06-30, and the lowest at $3.901 billion by 2023-03-31.
Operating Expense: Operating expenses ranged from $401 million (2023-03-31) to $420 million (2024-03-31), reflecting slight increases. This indicates relatively stable operational spending across the examined dates.
Total Expenses: Total expenses peaked at $4.748 billion in 2023-06-30 and have slightly adjusted since, also reflecting the increase in overall activity and scale of operations.
3. Profitability Analysis
EBITDA: EBITDA saw a high of $759 million in 2023-12-31, showcasing a strong operating performance. However, there was a slight decrease to $664 million by 2024-03-31.
Operating Income: Operating income peaked at $485 million in 2023-12-31 and decreased to $458 million in 2024-03-31, still showing strong operational control.
Pretax Income: Pretax income has been considerably volatile, with the highest reported at $397 million on 2023-09-30, showing potential non-operating influences on profitability.
Net Income: Net income has shown significant variability, peaking at $1.629 billion in 2023-09-30 due to possibly crucial one-time effects or exceptional items.
4. Cash Flow Indicators
Reconciled Depreciation: Depreciation has been relatively steady, highlighting ongoing capital expenditure and asset utilization without major escalations.
Interest Expense: Interest expense observed a maximum of $75 million (2023-09-30), aligning with debt management policies and financing strategies.
5. Taxation
Tax Rate: The normal tax rate utilized for calculations was mostly constant at 0.21, except in earlier periods of 2023.
Tax Provision: The tax provision was notably variable, reaching as high as -$1.312 billion in 2023-09-30, indicating significant tax events or benefits utilized during that period.
Tax Effect of Unusual Items: These effects have reduced taxable income, particularly noteworthy was -$27.51 million on 2023-12-31.
6. Shareholder Metrics
Diluted and Basic EPS: EPS peaked dramatically at 5.76 in 2023-09-30 aligning with the substantial net income realized in that quarter.
Average Shares: Average shares remained fairly stable which suggests no significant equity financing or stock buybacks during the period.
Net Income Available to Common Stockholders: This metric reached its zenith at $1.629 billion in 2023-09-30, directly correlating with the EPS increase.
7. Conclusion
APTV has shown considerable strength in revenue growth and gross profit margins over the last fiscal periods. However, net income volatility suggests exposure to one-time events or exceptional charges that must be considered. The company maintained controlled operational and total expenses but should manage non-operational risks that heavily impact pretax profits. Consistent shareholder returns via stable EPS and careful capital management reflect a solid investment return profile.
8. Appendices:
Supporting data tables and calculations can be provided separately for in-depth financial modeling and analysis.