Avis Budget Group Inc (CAR)

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 2,207,000 3,894,000 1,928,000 -725,000 465,000
Long-term debt US$ in thousands 4,791,000 4,644,000 3,990,000 4,191,000 3,416,000
Total stockholders’ equity US$ in thousands -349,000 -703,000 -220,000 -155,000 656,000
Return on total capital 49.68% 98.81% 51.14% -17.96% 11.42%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,207,000K ÷ ($4,791,000K + $-349,000K)
= 49.68%

Avis Budget Group Inc's return on total capital has shown variability over the past five years. In 2023, the return on total capital was 12.69%, a decrease from the previous year's 24.23%. However, it is still higher than the returns seen in 2021 (16.10%) and 2019 (6.01%). It is noteworthy that there was a negative return on total capital in 2020 (-2.54%), indicating a period of underperformance. Overall, the company's ability to generate returns from its total capital has fluctuated, with improvements seen in some years and setbacks in others. This variability may reflect changing market conditions, operational challenges, or strategic decisions made by the company.


Peer comparison

Dec 31, 2023

Company name
Symbol
Return on total capital
Avis Budget Group Inc
CAR
49.68%
Hertz Global Holdings Inc
HTZ
11.22%
Ryder System Inc
R
29.78%