Hertz Global Holdings Inc (HTZ)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 347,000 | 965,000 | 1,051,000 | 2,011,000 | 2,502,000 | 2,238,000 | 2,354,000 | 1,071,000 | 807,000 | 576,000 | -447,000 | -1,322,000 | -1,973,000 | -1,742,000 | -1,238,000 | -159,000 | 55,000 | 313,000 | 248,000 | 121,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 1,769,000 | 1,874,000 | 964,000 | 922,000 |
| Return on total capital | 11.22% | 28.47% | 37.02% | 72.49% | 94.59% | 81.06% | 86.26% | 39.64% | 27.11% | 13.69% | -12.35% | -498.87% | -3,523.21% | -510.85% | -221.47% | -11.59% | 3.11% | 16.70% | 25.73% | 13.12% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $347,000K ÷ ($—K + $3,092,000K)
= 11.22%
Hertz Global Holdings Inc.'s return on total capital has shown a decreasing trend over the past five quarters, declining from 12.57% in Q4 2022 to 4.08% in Q4 2023. This indicates that the company's ability to generate profits from the total capital employed has weakened. A possible explanation for this trend could be a decrease in the company's profitability, inefficient capital allocation, or an increase in the total capital employed without a corresponding increase in earnings.
It is essential for Hertz Global Holdings Inc. to closely monitor and address the factors influencing its return on total capital to enhance its financial performance and shareholder value. It may need to reassess its capital structure, operational efficiency, and strategic decision-making to improve its return on total capital in the future.
Peer comparison
Dec 31, 2023