Frontier Communications Parent Inc (FYBR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 458,000 | 770,000 | 1,091,000 | 1,145,000 | 1,165,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,524,000 | 5,279,000 | 5,134,000 | 4,600,000 | -4,900,000 |
| Return on total capital | 18.15% | 14.59% | 21.25% | 24.89% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $458,000K ÷ ($—K + $2,524,000K)
= 18.15%
Frontier Communications Parent Inc's return on total capital has shown fluctuations over the years. In 2021, the return on total capital was robust at 24.89%, indicating efficient utilization of both debt and equity in generating profits. However, the return dipped to 21.25% in 2022 and further decreased to 14.59% in 2023, signaling potential challenges in maintaining profitability relative to the capital invested. The return on total capital saw a moderate improvement in 2024, reaching 18.15%. Overall, while there have been variations in performance, Frontier Communications Parent Inc should continue to focus on optimizing its capital structure to enhance profitability and long-term sustainability.
Peer comparison
Dec 31, 2024