Geo Group Inc (GEO)
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 | 229,218 | 356,340 | -1,476,760 | -1,545,270 | -1,721,150 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,334,940 | 1,291,770 | 1,165,090 | 975,016 | 912,082 |
| Return on total capital | 17.17% | 27.59% | -126.75% | -158.49% | -188.71% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $229,218K ÷ ($—K + $1,334,940K)
= 17.17%
The return on total capital for Geo Group Inc has shown a fluctuating trend over the years. In December 31, 2020, the return on total capital was -188.71%, indicating a significant loss relative to the invested capital. This negative trend continued in December 31, 2021, with a return on total capital of -158.49%. However, there was a slight improvement in December 31, 2022, with a return on total capital of -126.75%.
The company experienced a turnaround in December 31, 2023, with a notable increase in the return on total capital to 27.59%, indicating a positive return above the cost of capital. This positive momentum was sustained in December 31, 2024, with a return on total capital of 17.17%. This positive trend suggests that the company was able to generate returns that exceeded the investment in capital during these periods.
Overall, the return on total capital for Geo Group Inc has shown a mix of negative and positive trends, indicating fluctuations in the company's ability to generate returns relative to its invested capital.
Peer comparison
Dec 31, 2024