Avis Budget Group Inc (CAR)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,207,000 | 2,555,000 | 3,128,000 | 3,614,000 | 3,894,000 | 3,905,000 | 3,473,000 | 2,867,000 | 1,928,000 | 1,266,000 | 406,000 | -697,000 | -725,000 | -605,000 | -345,000 | 342,000 | 465,000 | 464,000 | 486,000 | 444,000 |
| Long-term debt | US$ in thousands | 4,791,000 | 4,736,000 | 4,668,000 | 4,662,000 | 4,644,000 | 4,563,000 | 4,624,000 | 4,678,000 | 3,990,000 | 4,009,000 | 4,277,000 | 4,264,000 | 4,191,000 | 4,145,000 | 3,884,000 | 3,396,000 | 3,416,000 | 3,388,000 | 3,115,000 | 3,501,000 |
| Total stockholders’ equity | US$ in thousands | -349,000 | -33,000 | -129,000 | -444,000 | -703,000 | -509,000 | -654,000 | -992,000 | -220,000 | -211,000 | 92,000 | -316,000 | -155,000 | -76,000 | -153,000 | 292,000 | 656,000 | 495,000 | 376,000 | 324,000 |
| Return on total capital | 49.68% | 54.33% | 68.91% | 85.68% | 98.81% | 96.32% | 87.48% | 77.78% | 51.14% | 33.33% | 9.29% | -17.65% | -17.96% | -14.87% | -9.25% | 9.27% | 11.42% | 11.95% | 13.92% | 11.61% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,207,000K ÷ ($4,791,000K + $-349,000K)
= 49.68%
The return on total capital for Avis Budget Group Inc has shown a downward trend over the past four quarters, decreasing from 24.23% in Q4 2022 to 12.69% in Q4 2023. This indicates a decline in the company's ability to generate profits relative to the total capital invested. The highest return was recorded in Q1 2023 at 21.44%, suggesting a temporary improvement in the company's capital efficiency. However, the subsequent quarters have seen a consistent decrease in return on total capital. It is essential for investors and stakeholders to monitor this trend closely as it may indicate potential challenges in the company's operational performance and capital allocation strategies.
Peer comparison
Dec 31, 2023