Cable One Inc (CABO)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	527,287	498,163	451,038	454,315	305,544
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,873,140	1,757,970	1,793,100	1,495,300	841,569
Return on total capital		28.15%	28.34%	25.15%	30.38%	36.31%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $527,287K ÷ ($—K + $1,873,140K)
= 28.15%

Cable One Inc's return on total capital has shown a declining trend over the past five years. The company achieved a return on total capital of 8.77% in 2023, a decrease from 9.32% in 2022 and 8.24% in 2021. This suggests that the company's ability to generate returns from its total capital has weakened in recent years. Moreover, the return on total capital of 8.77% in 2023 is significantly lower compared to the higher levels of 10.52% in 2020 and 12.27% in 2019, indicating a gradual decline in the efficiency of capital utilization by Cable One Inc. This decreasing trend in return on total capital could be a cause for concern and may warrant further investigation into the company's capital allocation strategies and operational performance.