Comcast Corp (CMCSA)
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 | 24,846,000 | 13,625,000 | 23,699,000 | 18,486,000 | 21,297,000 |
| Long-term debt | US$ in thousands | 92,200,000 | 86,900,000 | 109,300,000 | 125,600,000 | 115,800,000 |
| Total stockholders’ equity | US$ in thousands | 82,703,000 | 80,943,000 | 96,092,000 | 90,323,000 | 82,726,000 |
| Return on total capital | 14.21% | 8.12% | 11.54% | 8.56% | 10.73% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $24,846,000K ÷ ($92,200,000K + $82,703,000K)
= 14.21%
The return on total capital for Comcast Corp has shown a generally increasing trend over the past five years. In Dec 31, 2023, the return on total capital was 13.41%, which represents an improvement from 12.57% in Dec 31, 2022, and 11.95% in Dec 31, 2021. This indicates that the company has been able to generate a higher return relative to its total capital employed.
The upward trajectory in return on total capital suggests that Comcast Corp has been effectively utilizing its capital to generate profits. It is also indicative of improved efficiency and profitability in utilizing both debt and equity in the business. This trend could be viewed positively by investors and lenders, as it signifies the company's ability to generate returns on the total capital invested in the business.
Overall, the increasing trend in return on total capital reflects positively on Comcast Corp's financial performance and capital management over the analyzed period.
Peer comparison
Dec 31, 2023