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.
Peer comparison
Dec 31, 2023