Cable One Inc (CABO)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 395,546 | 480,861 | 500,740 | 525,806 | 540,493 | 551,483 | 543,462 | 528,977 | 630,694 | 615,643 | 609,872 | 607,852 | 475,171 | 458,797 | 435,363 | 407,051 | 389,577 | 373,904 | 359,422 | 330,514 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,796,030 | 1,884,600 | 1,963,620 | 1,926,740 | 1,873,140 | 1,802,730 | 1,767,740 | 1,742,610 | 1,757,970 | 1,897,130 | 1,905,500 | 1,936,150 | 1,793,100 | 1,731,220 | 1,680,840 | 1,600,650 | 1,495,300 | 1,384,400 | 1,323,550 | 810,891 |
| Return on total capital | 22.02% | 25.52% | 25.50% | 27.29% | 28.85% | 30.59% | 30.74% | 30.36% | 35.88% | 32.45% | 32.01% | 31.39% | 26.50% | 26.50% | 25.90% | 25.43% | 26.05% | 27.01% | 27.16% | 40.76% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $395,546K ÷ ($—K + $1,796,030K)
= 22.02%
The return on total capital for Cable One Inc has shown some fluctuations over the years. It was at a relatively high level of 40.76% as of March 31, 2020, which then decreased to 27.16% by June 30, 2020. The trend continued with a slight decline to 26.05% by December 31, 2020, before gradually increasing to 32.45% by September 30, 2022.
However, after reaching a peak of 35.88% by December 31, 2022, the return on total capital started to decline again. By December 31, 2024, it had dropped to 22.02%, indicating a decrease in the efficiency of utilizing the total capital to generate returns.
Overall, Cable One Inc's return on total capital has demonstrated a mix of ups and downs over the years, with fluctuations in performance. It would be essential for the company to assess the factors contributing to these changes and implement strategies to sustain or improve its return on total capital going forward.
Peer comparison
Dec 31, 2024