CoreCivic Inc (CXW)
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 | 159,378 | 172,922 | 164,157 | 156,742 | 168,783 | 166,531 | 242,471 | 241,440 | 250,276 | 261,136 | 207,066 | 216,187 | 174,045 | 112,151 | 100,147 | 97,003 | 150,164 | 214,250 | 238,426 | 267,418 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,493,350 | 1,476,220 | 1,447,520 | 1,443,920 | 1,477,570 | 1,458,300 | 1,439,140 | 1,419,730 | 1,432,410 | 1,402,180 | 1,368,940 | 1,391,520 | 1,372,470 | 1,339,360 | 1,286,960 | 1,266,960 | 1,390,170 | 1,412,720 | 1,381,910 | 1,355,400 |
| Return on total capital | 10.67% | 11.71% | 11.34% | 10.86% | 11.42% | 11.42% | 16.85% | 17.01% | 17.47% | 18.62% | 15.13% | 15.54% | 12.68% | 8.37% | 7.78% | 7.66% | 10.80% | 15.17% | 17.25% | 19.73% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $159,378K ÷ ($—K + $1,493,350K)
= 10.67%
CoreCivic Inc's return on total capital has shown fluctuations over the years, ranging from a high of 19.73% as of March 31, 2020, to a low of 7.66% as of March 31, 2021. The return has displayed a downward trend from 2019 to early 2021, reflecting potential challenges or inefficiencies in capital utilization during that period.
However, there seems to be a recovery in the return on total capital in the latter half of 2021 and through 2022, with an increasing trend observed reaching a high of 18.62% as of September 30, 2022. This improvement indicates a potential enhancement in the company's capital efficiency and profitability during this period.
In the subsequent quarters up to June 30, 2024, the return on total capital has remained relatively stable, ranging between 10.67% and 11.71%. Although these figures are lower compared to the peak in 2022, the stability suggests a consistent performance in utilizing capital to generate returns.
Overall, it is essential for CoreCivic Inc to continue monitoring and enhancing its return on total capital to ensure efficient allocation of resources and sustainable profitability in the long term.
Peer comparison
Dec 31, 2024