Graham Holdings Co (GHC)
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 | 1,210,860 | 367,668 | 175,744 | 484,201 | 446,052 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,256,660 | 3,975,740 | 3,731,380 | 4,399,580 | 3,759,300 |
| Return on total capital | 28.45% | 9.25% | 4.71% | 11.01% | 11.87% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,210,860K ÷ ($—K + $4,256,660K)
= 28.45%
The return on total capital for Graham Holdings Co has displayed fluctuations over the past five years. In 2020, the return on total capital was 11.87%, showing a decent performance. However, in the following year, the return decreased to 11.01%, still maintaining a relatively strong position.
The return on total capital took a significant decline in 2022, dropping to 4.71%, indicating a potential issue with the company's capital allocation or profitability during that period. However, the company managed to improve its performance in 2023 with a return on total capital of 9.25%, albeit still below the levels seen in 2020 and 2021.
In the most recent year, 2024, Graham Holdings Co experienced a notable increase in its return on total capital to 28.45%. This significant improvement suggests that the company's capital utilization and overall profitability have rebounded strongly.
Overall, while there have been fluctuations in Graham Holdings Co's return on total capital over the analyzed period, the latest data point to a notable recovery and improved efficiency in capital management.
Peer comparison
Dec 31, 2024