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