Hertz Global Holdings Inc (HTZ)
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 | -2,278,000 | 1,073,000 | 2,904,000 | 547,000 | -1,444,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 153,000 | 3,092,000 | 2,645,000 | 2,977,000 | 56,000 |
| Return on total capital | -1,488.89% | 34.70% | 109.79% | 18.37% | -2,578.57% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-2,278,000K ÷ ($—K + $153,000K)
= -1,488.89%
Hertz Global Holdings Inc's return on total capital has experienced significant fluctuations over the years. In December 2020, the company reported a notably negative return on total capital of -2,578.57%, indicating substantial underperformance in generating returns relative to the capital invested. However, by December 2021, the return improved to 18.37%, reflecting a turnaround in the company's financial performance.
The following year, in December 2022, Hertz Global Holdings Inc's return on total capital saw a remarkable increase to 109.79%, suggesting a very efficient use of capital to generate profits. However, in December 2023, the return decreased to 34.70%, indicating a slight decline in profitability.
By December 2024, the company experienced a significant decline in its return on total capital to -1,488.89%, marking a substantial negative return relative to the capital employed. This indicates a substantial decrease in the efficiency of capital utilization or potential issues impacting profitability during that year.
Overall, the analysis of Hertz Global Holdings Inc's return on total capital reveals fluctuating performance levels, with some years showing strong efficiency in capital allocation and profitability, while others displaying significant challenges in generating returns relative to the capital invested.
Peer comparison
Dec 31, 2024