Cable One Inc (CABO)
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 | 106,180 | 554,840 | 537,563 | 475,201 | 389,604 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,796,030 | 1,873,140 | 1,757,970 | 1,793,100 | 1,495,300 |
| Return on total capital | 5.91% | 29.62% | 30.58% | 26.50% | 26.06% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $106,180K ÷ ($—K + $1,796,030K)
= 5.91%
Based on the data provided, Cable One Inc's return on total capital has shown varying trends over the five-year period from 2020 to 2024.
In 2020, the company's return on total capital was 26.06%, indicating that for every dollar of total capital employed, Cable One Inc generated a return of 26.06 cents. The return remained relatively stable in 2021 at 26.50%.
There was a significant improvement in 2022, with the return on total capital increasing to 30.58%, suggesting that the company's capital utilization and operational efficiency improved during that year.
However, in 2023, the return on total capital slightly decreased to 29.62%, though it remained relatively high compared to the earlier years.
The most notable change occurred in 2024, with the return on total capital dropping to 5.91%. This sharp decline may indicate challenges or changes in the company's financial performance or capital management strategies during that year.
Overall, Cable One Inc's return on total capital has fluctuated over the five-year period, with a general trend of improvement until 2023 when it experienced a decline. The significant drop in 2024 warrants further investigation to understand the factors contributing to this decrease and evaluate the company's capital allocation decisions and operational performance.
Peer comparison
Dec 31, 2024