CoreCivic Inc (CXW)
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 | 168,694 | 166,503 | 242,443 | 241,412 | 250,294 | 258,736 | 204,666 | 213,787 | 171,645 | 105,010 | 93,006 | 89,862 | 141,842 | 214,121 | 237,937 | 266,671 | 281,564 | 279,962 | 273,286 | 264,044 |
| Long-term debt | US$ in thousands | 1,083,480 | 1,055,590 | 1,058,820 | 1,092,620 | 1,084,860 | 1,113,940 | 1,148,680 | 1,483,950 | 1,492,050 | 1,586,360 | 1,480,290 | 1,719,120 | 1,747,660 | 2,043,690 | 2,227,320 | 2,236,430 | 1,928,020 | 1,521,780 | 1,569,120 | 1,828,110 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,376,750 | 1,383,200 | 1,382,590 | 1,382,410 |
| Return on total capital | 6.59% | 6.62% | 9.71% | 9.61% | 9.94% | 10.28% | 8.13% | 7.43% | 5.99% | 3.59% | 3.36% | 3.01% | 4.52% | 6.19% | 6.59% | 7.42% | 8.52% | 9.64% | 9.26% | 8.22% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $168,694K ÷ ($1,083,480K + $1,477,570K)
= 6.59%
CoreCivic Inc's return on total capital has shown some fluctuation over the past eight quarters. In Q4 2023, the return on total capital was 6.62%, which was slightly lower compared to the previous quarter's figure of 6.73%. This indicates a slight decrease in the company's ability to generate profits relative to the total capital employed in its operations.
Looking at the trend from Q1 2022 to Q4 2023, the return on total capital has generally remained within a range of 6.53% to 8.26%, with the highest point observed in Q2 2022 at 8.26%. Despite some variability, the return on total capital has generally been in the mid-single-digit to low-double-digit range, signaling a moderate level of profitability relative to the capital invested.
Overall, CoreCivic Inc's return on total capital has been relatively stable over the past eight quarters, showing that the company has been able to effectively utilize its capital to generate profits, albeit with some fluctuations. Monitoring this ratio going forward will be important to assess the company's ongoing financial performance and efficiency in capital allocation.
Peer comparison
Dec 31, 2023