Hertz Global Holdings Inc (HTZ)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -2,281,000 | -2,263,000 | -112,000 | 480,000 | 1,073,000 | 834,000 | 828,000 | 1,701,000 | 2,117,000 | 2,573,000 | 2,633,000 | 1,381,000 | 1,153,000 | 963,000 | 0 | -842,000 | -1,444,000 | -1,136,000 | -557,000 | 554,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 153,000 | 681,000 | 1,958,000 | 2,812,000 | 3,092,000 | 3,390,000 | 2,839,000 | 2,774,000 | 2,645,000 | 2,761,000 | 2,729,000 | 2,702,000 | 2,977,000 | 4,206,000 | 3,620,000 | 265,000 | 56,000 | 341,000 | 559,000 | 1,372,000 |
| Return on total capital | -1,490.85% | -332.31% | -5.72% | 17.07% | 34.70% | 24.60% | 29.17% | 61.32% | 80.04% | 93.19% | 96.48% | 51.11% | 38.73% | 22.90% | 0.00% | -317.74% | -2,578.57% | -333.14% | -99.64% | 40.38% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-2,281,000K ÷ ($—K + $153,000K)
= -1,490.85%
Hertz Global Holdings Inc's return on total capital has fluctuated significantly over the period analyzed. The ratio stood at a high of 40.38% as of March 31, 2020, indicating strong profitability relative to the invested capital. However, this was followed by a sharp decline, with negative returns in subsequent quarters, reaching as low as -2,578.57% by December 31, 2020, reflecting significant losses exceeding the invested capital.
The return on total capital gradually improved from thereon, reaching 96.48% as of June 30, 2022, suggesting a positive turnaround in the company's performance and capital efficiency. Subsequently, the ratio fluctuated between 17.07% to 93.19% until December 31, 2023, indicating mixed performance during this period.
However, the return on total capital experienced a sharp decline in the latter half of 2024, with negative returns of -332.31% and -1,490.85% as of September 30, 2024, and December 31, 2024, respectively. These negative figures suggest that the company may be experiencing challenges in generating profits relative to its total capital invested.
Overall, Hertz Global Holdings Inc's return on total capital has shown significant variability, reflecting fluctuations in profitability and capital utilization efficiency over the period assessed. Analyzing the factors driving these fluctuations would be essential to understanding the company's financial performance and strategic decisions.
Peer comparison
Dec 31, 2024